The apex body of oil firms, the Association of Oil and Gas Operators (AOGO), has petitioned Prime Minister Manmohan Singh, saying a media campaign questioning the government’s oil and gas policies gave a distorted picture of how business was done in India.
The body, set up in 2006, has members cutting across the exploration and production industry, from ONGC to Reliance. On October 8, it wrote to Singh taking exception to “external parties” seeking fixed returns only on investments made in producing hydrocarbons, while the risk money and that spent on unsuccessful exploration was forgotten.
Although AOGO did not name the parties the campaign, Anil Ambani group firm RNRL, which is fighting a legal battle with Mukesh Ambani-run RIL for gas supply, had in August brought out an advertisement campaign on the role of government in the tussle.
A spokesperson for ADAG, which had recently written to the Prime Minister, stating that the petroleum ministry’s policies would adversely impact investors’ response to oil and gas block auctions, declined comment. “The upstream segment of the hydrocarbon industry is characterised by very high risk and cannot be judged by norms of returns or margins of manufacturing sector,” AOGO said.
“The campaign conveys a distorted and negative view of doing business in India. This will adversely affect new companies coming to India as well indigenous companies from investing in the country,” AOGO said. “We request a very quick and time-bound and decisive action protecting the image of industry, ensuring brand India (is) not tarnished,” it wrote. The Association raised concern over tarnishing the reputation of ministry or DGH saying technical achievements were being “sullied by external parties without any basis.”
