"There is no probability, we will definitely be able to run them (Assam oilfields of ONGC) better than anyone else," OIL Chairman and Managing Director N M Borah told a news conference here.
The Ministry of Petroleum and Natural Gas has suggested that ONGC explore the possibility of hiving off its Assam assets into a wholly-owned subsidiary. The proposal is aimed at improving the productivity of ONGC’s Assam operations.
ONGC produces 1.1 million tons of crude oil annually from the Assam fields employing over 4,000 personnel. On contrast, OIL used 6,500-odd employees to produces 3.6 million tons of crude oil and is projecting an annually growth of 3-5 per cent. OIL's cost of production in the North-East is under USD 7.5 per barrel while that of ONGC is higher than that.
"We will be a position to run (the fields) better," he said but hastened to add that OIL had not formally heard anything on hiving-off of ONGC's Assam assets or their possible sale to OIL.
Published 31 January 2010, 09:16 IST