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ONGC subsidiary to be merged with OIL: AGP

Last Updated: Saturday, December 26, 2009 - 21:31

Guwahati: Opposition Asom Gana Parishad on Saturday demanded that the proposed ONGC subsidiary - Assam Assets – to be amalgamated with Oil India Ltd (OIL) to make it a viable company.
Opposing the creation of a subsidiary within ONGC consisting of the oilfields in Assam, AGP General Secretary Sarbananda Sonwal said, "The proposed subsidiary should be merged with OIL."

Asserting the subsidiary creation proposal was discriminatory, Sonowal said, " The focus should instead be on increasing Assam Assets` production level."

Lack of management had caused ONGC to reduce its production to 1.1 million metric tonne per annum from 3 mmtpa in Assam Assets, he said.

Meanwhile, ONGC Onshore Director Ajit Hazarika told PTI that there was no proposal for separating Assam Assets from ONGC and that it was exclusively for Assam and would not be privatised.

All Assam Students Union (AASU) supported by Telpathar Sangram Samity (TSS) was protesting the move by the petroleum and natural gas ministry to demote ONGC-Assam Assets into a subsidiary of the oil major "in a calculated move towards privatisation".

AASU-sponsored 96-hour ONGC bandh ending on Friday against the subsidiary creation proposal had caused the public sector oil major to lose over Rs 10 crore and 500 tonne plus crude oil production, besides permanent damage to some of the oil wells, ONGC sources said.

Drilling operations and production in Rudrasagar, Geleky, Lakwa and other oilfields in the district had almost come to a halt during the bandh, sources said.

Stating drilling in the 22 oil rigs were halted due to the bandh, he said, all the wells had closed down and their condition was not known as to whether they had collapsed or were still functional.


First Published: Saturday, December 26, 2009 - 21:31

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