Oil and exploration giant ONGC has denied the grapevine that the company was discreetly planning to sell its oil fields in Assam to private parties or merge its Assam Asset with Oil India Limited.
A senior official from ONGC told Business Standard that such grapevine was “misleading and were to malign the image of the company.”
“I want to make it very clear that ONGC has no such plan to privatise or hive off Assam Asset. I do not know from where local media get suchinformation,” he added.
But he admitted that there were deliberations on creating a wholly-owned subsidiary of Assam Asset, on the lines of ONGC Videsh Limited, for a “more focussed approach” to its operations in Assam.
He said that implementation of the ‘Assam Renewal Project’ was well on line and the company was working to improve the efficiency and productivity of the oil fields in Assam. The company, he said, rather will invest Rs 2,230 crore, the largest-ever investment by the corporation in Assam, under its 'Assam Renewal Project', which would include modernisation of surface installations and facilities and enhancement of operational efficiency.
The project would include creation of integrated complexes, revamp of 1,200-km pipelines and modernisation of associated surface infrastructure.
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In addition, drilling of at least 200 new well at an estimated cost of Rs 2,000 crore is presently underway by the corporation in Assam. ONGC presently has around 300 wells in operation in Assam.
It will use new drilling technologies with "thrust on concerted revival of sick wells for production enhancement," the official said.
ONGC's Assam Asset is headquartered at Nazira in Sibsagar district in upper Assam.