Oil ministry distorted facts, alleges Raha

Pained at what he termed as "deliberate distortion" of Oil and Natural Gas Corporation's performance, Subir Raha, before demitting office as the company's chairman, had hit out at the oil ministry saying "truth should not be drowned in prejudice".

Raha shot off a letter to Petroleum Minister Murli Deora on May 23, a day before his five-year term ended unceremoniously, contesting sweeping allegations made by former minister Mani Shankar Aiyar, whose adverse comments were cited as the reasons for denial of extension to the high profile CEO.

Referring to allegations made by the previous minister in a presentation to the prime minister's office on December 16, 2005, he said "overwhelmingly, information was suppressed or distorted or even invented to raise these allegations."

"It is disheartening that the unprecedented effort since 2001 to achieve improvements in every aspect of ONGC, with unwavering focus on exploration and production, has been subjected to disparaging opinions based on deliberate distortions," Raha wrote, giving a 14-page point-by-point rebuttal to each allegation.

"...Truth should not be drowned in prejudice," he said.

While Aiyar could not be immediately contacted for comments, an ailing Raha did not take calls.

Mumbai High field output had fell to 218,000 barrels per day in 1999-00. "During 2001-05, the decline was arrested and production raised to 270,000 bpd on a sustained basis. Without this massive effort, production would have come down to 150,000 bpd in 2006-07 by natural decline alone," Raha wrote.

The letter listed efforts to bring back Assam, Ahmedabad and Mehsana fields and termed as a "canard" statements that ONGC's resources were being diverted to downstream refining and power projects or overseas oil property acquisition.

"Out of Rs 31,243 crore total capex (capital expenditure) in the last five years, Rs 1,475 crore (4.7 per cent) was spent on downstream business. Of this, Rs 1,355 crore (4.3 per cent), was spent to acquire 72 per cent equity and exclusive management control of Mangalore Refinery and Petrochemicals Ltd at the instance of the oil ministry," Raha said.

The letter, a copy of which was also marked to the principal secretary to the prime minister and the Cabinet secretary, said natural decline of 6-8 per cent per year had been arrested in most fields and ONGC brought one offshore and 14 onshore fields into production since 2001.