The government has set up a six-member panel that will work on the suggestion of selling close to 149 state-owned small and marginal oil as well as gas fields. The fields, owned by Oil India Limited (OIL) and Oil and Natural Gas Corp (ONGC), will be sold to foreign and private companies so as to boost the domestic output.
During a meeting called for by Prime Minister Narendra Modi to review the domestic oil and gas production profile, it was found that 149 ONGC, OIL, and other explorers had contributed to the production of only 5 per cent of domestic crude oil.
PM Modi had said that the percentage of dependence on overall oil imports should drop by 10 per cent by the year 2022 when the dependence was estimated at 77 percent during 2014-15. Currently, however, the dependence on oil imports has risen up to 83 per cent.
During the meeting held with PM Modi, it was suggested that OIL and ONGC sell the smaller fields and concentrate on the big ones where technical service arrangements and production enhancement contracts can be roped in to improve the production.
Additionally, sources say that selling the small fields to private firms will help increase the output of the field with the help of the capital and technology resources available with the companies.