Business Standard

Aiyar slams oil PSUs, moots merger

PETROTECH 2005

Image

Our Economy Bureau New Delhi
After tasting initial success in oil diplomacy over the past 10 days, Petroleum Minister Mani Shankar Aiyar today threw up for discussion another of his pet subject: intense competition among oil and gas public sector. The minister criticised the PSUs at Petrotech 2005.
 
While stating that he is not for "an interfering minister or an interfering ministry", Aiyar said, "What do I do if they fight with themselves."
 
Seeking greater consolidation in the sector, Aiyar said he wanted a strong public sector company so that he does not have to seek appointments of global CEOs but instead they line up for him.
 
Aiyar will soon be heading for roadshows to Japan and the United States to invite participation in the oil and gas exploration blocks in India.
 
He said mergers in the petroleum sector should be in such a way that companies retain their identities in India and show one face when they go abroad. The minister asked public-sector companies to combine Indian genius with Japanese team work.
 
ONGC's poor track record in terms of new discoveries came in for criticism from the minister who said that the company was getting old in the tooth.
 
"Perhaps, ONGC needs a younger partner like Cairn," he said while asking the company to think out of the box to find new oil and gas fields for the nation's oil security.
 
He gave a new motto to ONGC to work on: "We usually find oil in new places with oil ideas. Sometimes, we also find oil in an old place with a new idea. But seldom we find much oil in an old place with an old idea. Several times in the past, we had thought that we were running out of oil, whereas we were actually running out of ideas," Aiyar commented.
 
While stressing the need to have petroleum technology institutes on the lines of IITs, Aiyar paid ONGC a back-handed compliment. "These institutes should have a bright future just as ONGC had a bright past," he said.
 
The minister ruled out the suggestion of having energy companies or a single energy ministry by stating that it was not possible in coalition governments.
 
Stressing the need to pursue country's hydrocarbon interests abroad, he mooted the proposal of having oil attaches in other countries.
 
He exhorted the oil PSUs to "think out of the box" to find new oil and gas fields for the nation's oil security.

 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 17 2005 | 12:00 AM IST

Explore News