< Govt plans to divest 15 oil fields | Current Affairs, Current Affairs 2019

Govt plans to divest 15 oil fields

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The oil ministry is considering divesting oil and gasfields developed by state-run ONGC and Oil India (OIL) to private companies.

According to top officials, the government is planning to raise the domestic production with world class technology and oilfield management practices, thereby encouraging investment, help in skill development and generate employment.
Besides, a policy being stitched, offers major stake with operational control in these fields for 20 years, or the field’s remaining life. The mining lease will also be transferred to the private company chosen through bidding. Companies offering the highest investment -within 10 years of the award -and revenue share will win the fields. The purpose of such a plan is that the government’s move has been prompted by the view that the companies have failed to pump up volumes from these fields to desired levels and private companies should be given a chance.

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