ONGC to invest upto Rs 6000 cr in Bombay High

The plan for the northern part of the structure had been finalised while for the southern part it is expected to be ready by June or July, Naik said.

Production from Bombay High, India’s largest oil field accounting for 56 per cent of country’s crude output, has been falling in the past decade.

In 1999-2000, the field produced 16.75 million tonnes as against a peak of 20 million tonnes in 1989-90.

On disinvestment of oil PSUs, Naik is singing his colleague Sharad Yadav’s tunes by ruling out any disinvestment in the oil sector. “We do not have any immediate plans to initiate disinvestment in the oil sector,” Naik said.

The Minister who was accompanied by his ministers of state, E Ponnuswamy and Santosh Kumar Gangwar, said that the oil industry as a whole, is performing well and their financial health is also good. He said of the 14 public sector units under his command, five have navratna status, seven are miniratnas, while one of the unit has just started its production and another’s health is improving.

“The companies are earning good profits and declaring good dividends,” he said. “The cows are giving sufficient milk and the immediate aim of the industry is to strengthen the oil companies and restructure it whereever needed. Disinvestment need not be taken at this stage,” he added.

Naik, when asked about the stand-alone refineries, said that they will either be merged with the oil majors in a phased manner or be made its subsidiaries. “some major decisions in this regard will be taken this year.”