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ONGC likely to farm out 45 oil fields to private sector

Oil and Natural Gas Corporation is likely to farm out 45 of its small and marginal oil fields all over the country to private sector companies on service contract basis.

"We plan to invite expression of interest for operating around 45 of our small and marginal fields in the next couple of weeks," ONGC chairman and managing director Subir Raha said in New Delhi.

ONGC would continue to retain ownership of these fields but would provide a bonus to private operator for every incremental output that results out of the fields, he said adding the private operator would be paid a fee for its services.

The Navratana board cleared the proposal along with a modified production sharing contract last week.

ONGC has over 80 category-I small and marginal fields, which would be farmed out to private sector in phases, Raha said adding in the first phase 45 fields would be offered.

Category-I fields are those where hydrocarbon presence is established. ONGC is keen on getting private operators to run these fields on account of stagnant and even declining output from these fields in the last few years, he said.

However, the issue of bearing responsibility for making the investment in equipment required to enhance output in the fields was yet to be sorted out.

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