Assam chief minister Himanta Biswa Sarma has written to PM Narendra Modi requesting him to consider transferring all the assets of ONGC in the north eastern Region to Oil India Limited.
The move comes amid petroleum ministry’s directives to the former to sell stake in producing oil fields and hive off drilling and other services into a separate firm to raise production.
Assam and Assam Arakan Basin can be considered to be a super basin of India with an estimated hydrocarbon resources of 7634 MMTOE and holds 5588 MMTOE of Yet To Find (YTF) resource potential, which is next only to KG Basin.
The region accounts for 26% of oil and 44% of gas production out of the entire oil and gas production from Onshore India (2019- 20 figures) and ONGC and OIL are the two major players in the region. During 2019-20, oil and gas production in Assam was 4.15 MMT and 3.14 BCM respectively, even though major fields operated by both ONGC and OIL are old and mature.
Sarma pointed out in his letter on June 5 that as both ONGC and OIL are national oil companies and also as the acreages to ONGC were awarded under nomination regime, there should be “no issues in transfer of assets by transferring the nomination from ONGC to OIL” and urged PM Narendra Modi that “Government of India may kindly consider transfer of all the acreages of ONGC in the North Eastern Region to OIL.”
Sarma in his letter to PM Modi, a copy of which is with TOI, stated that almost the entire production of OIL comes from the north eastern region and hence the focus of OIL on exploration and production in this region is undivided.
“OIL is born in Assam and has been operating there over several decades. The interaction of Oil India with the local populace is commendable. It has been felt that the operations in the entire North Eastern Region may be carried out by one major operator, preferably OIL,” Sarma wrote.
He added that OIL is a company “rooted in the North Eastern Region and understands the nuances of the region” and
With more than 90% of employees from the region, the company would be able to focus with undivided attention on the operations and at the same time be sensitive to the aspirations of local people, he said.
Sarma also mentioned that with taking over of Numaligarh Refinery Limited (NRL), OIL’s net-worth has improved substantially and it has led to vertical integration and with further expanding the operational areas and production, OIL can aspire to be the “only Maharatna Company of our region and would truly reflect the Act East Policy.”
He wrote that if OIL is given the ONGC assets, it can also endeavour to create hydrocarbon sector manufacturing and services hub in Assam which can in the long run aspire to provide services to the far eastern countries.
