KOLKATA: The exploration giant will shortly seek an expression of interest from private companies for the oilfields, whose ownership will however remain with ONGC, according to company sources. "The oilfields could be given to private firms on a service-contract basis, which will mean their ownership will remain with the ONGC," a source said. These oilfields are in the red, but ONGC authorities feel the oilfields could prove profitable for private firms because of smaller operating costs. Most of these fields are economically nonviable for ONGC because of huge overheads and diminishing production. The oilfields will be given in a phased manner with 40 of them earmarked for allocation under the first phase. Though financial details of the plan are still to be worked out, ONGC plans to give a fixed service charge to private firms and a bonus for incremental output. ONGC is hoping to hit rich reserves along West Bengal's coasts. It will begin drilling for oil at two places by March next year. The agency has drilled 48 sites in West Bengal, but has so far failed to hit commercially viable reserves. ONGC will also begin on-shore and offshore explorations in the Sunderbans and Contai areas by the Bay of Bengal. It will look for methane gas in the coal-rich Raniganj-Jharia belt.
Source: IANS