For the govt, ONGC-GSPC tie-up is ‘business as usual’

The Ministry of Petroleum and Natural Gas does not see an anomaly in a tie-up between ONGC Ltd and

Gujarat State Petroleum Corporation (GSPC) for the latter’s Deen Dayal West block in the Krishna-

Godavari basin.

“As far as GSPC and ONGC’s talks are concerned, this is a company-to- company decision. I wish them

well. Both are public sector companies. If they come to an understanding keeping their profitability

paramount, we don’t have any problem,” said Dharmendra Pradhan, Minister of State for Petroleum

and Natural Gas.

Senior Congress leader Jairam Ramesh had on Thursday accused the Centre of trying to force ONGC to

buy the Deen Dayal West assets from GSPC.

Responding to the allegations, Pradhan said, “If GSPC had been given the provisions of the production-

sharing contract of NELP, if they had marketing freedom, maybe they would have been able to start

production.”

Aramco, Total, Shell eye entry into retail fuel market: Pradhan

Global oil majors, including Saudi Aramco and Total, plan to tap the retail fuel market in India, Union

Petroleum Minister Dharmendra Pradhan said on Friday, reflecting the expanding role of the world’s

fastest-growing large economy on the global crude landscape.

India’s fuel markets could be a lucrative prize for global oil majors as they seek outlets for their gasoline

and diesel. India posted the fastest oil demand growth in the world in the first quarter of 2016 and is

replacing China as the driver of growth globally, the International Energy Agency said in its latest report.

“Saudi Aramco is eager to enter the Indian market, we are finding ways to help them,” Pradhan said.

India, the world’s fourth-biggest oil consumer, recently offered Saudi Aramco a stake in refineries and

petrochemical projects.

Saudi Aramco wants to expand globally and is looking at potential joint ventures in several countries,

including Indonesia, India, the United States, Vietnam and China, its chief executive officer, Amin Nasser,

told Reuters in an interview in May.

Fuel marketing in India has turned profitable after the government ended decades-old control over the

retail prices of gasoline and diesel.

Pradhan said local private oil refiners Reliance Industries and Essar Oil had started opening their

mothballed fuel stations and were adding new ones to expand business.

French major Total and European major Royal Dutch Shell, which have a limited presence in India, were

also keen to strengthen their presence in the fuel retailing business, Pradhan said.

“Shell officials recently met me and informed about their plan to expand the retail network in a big way

in southern India,” he said.

He said his ministry had agreed to grant a licence to BP to market jet fuel in India. “There is a possibility

they (BP) may expand into the Indian retail sector,” he said.

Essar Oil is still working to complete a deal to a sell 49 per cent stake in its 400,000 barrel per day

Vadinar refinery in western Gujarat state to Russian giant Rosneft .

“Rosneft, rich with oil and gas, wants to join Indian markets,” Pradhan said.

NGS INDIA