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The Minister of Petroleum & Natural Gas and Panchayati Raj Shri Mani Shankar Aiyar, informed the Lok Sabha in a written reply today that the Government has approved enhanced delegation of powers to the ONGC Videsh Limited (OVL) Board. The Board has been authorized to take decisions on projects involving investment upto US$ 75 Million or Rs.300 Crore, whichever is less. Earlier, OVL board had the powers for investments upto US$50 million.
Shri Aiyar further said that the enhanced delegation of powers may not have any direct correlation with OVL competing with Chinese companies or any other company, as the degree of success in acquiring exploration and production projects mainly depends on the competitive terms offered by companies to the host governments and decisions of the host Governments. In case of farm-in/farm-out proposals involving transactions between companies, it would depend on the deals between the companies which are usually subject to approvals of the host government and preemption rights available to other partners in such projects.
He also said that OVL is already working with Chinese companies in Sudan and the Ivory Coast. Looking to the vast possibilities of forging alliances with Chinese oil companies in seeking acreages in third countries and bilateral cooperation in other areas of the hydrocarbon sector, the national oil companies of India and China keep in touch with each other on a case-to-case basis. Although no agreement has been signed between India and China in the area of cooperation in hydrocarbons, a joint Task Force of the Ministries of External Affairs and Petroleum & Natural Gas has been established to examine the prospects for Sino-Indian cooperation in the hydrocarbons sector.
RCJ/ KC/ investment by ONGC (24.3.05)
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