The Leader of the Opposition in the Assam Legislative Assembly Debabrata Saikia on Tuesday clarified that he has not given any unequivocal endorsement to the Production Enhancement Contract (PEC) model adopted by the Oil and Natural Gas Corporation (ONGC) to develop oilfields with the participation of private players, as has been claimed by some officials of the petroleum giant.
Saikia said that he appreciates certain aspects of the ONGC’s performance, such as increase in productivity, reduction in losses, CSR activities and employees’ welfare.
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On the other hand, Saikia sought a detailed explanation regarding the difference between the PEC model and the earlier version of majority stake sale/transfer of certain oilfields to private players.
Saikia, who is also MLA, Nazira made it clear that he would not comment on the pros and cons of the PEC matter pending detailed clarification from the ONGC administration.
In fact, the Congress leader advised the ONGC administration to make a public clarification in order to address the public perception that PEC was merely stake sale in disguise.
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Saikia’ clarification comes close on the heels of a press communiqué in this connection, issued by the ONGC Assam Asset, in which it stated that Saikia had congratulated ONGC, Assam Asset for the turn-around of the Asset under the leadership of SD Maske, ED-Asset Manager, ONGC, Assam Asset and highly appreciated him for improving production, future operational plans and proactive CSR projects during his recent visit to Nazira on August 19..
The ONGC communiqué further said that MLA and Leader of Opposition was apprised of ONGC Assam Asset’s performance, ongoing operations, future plans of the Asset and CSR initiatives of ONGC in a lucid presentation.
The presentation covered various performance parameters like increase in Oil and Gas production, sales, increase in revenue and corresponding royalty to state and Central government and the salient features of Production Enhancement Contract (PEC) which is being introduced in ONGC to enhance production from the matured brown fields.
It was apprised that the key features of the PEC is that the service providers shall bring comprehensive technologies to improve production at their cost whereas the ownership of the fields shall remain with the ONGC.
ONGC’s CSR initiatives and its quest to foster development in the region will continue charting its course towards
inclusive growth even after introduction of PEC.
The MLA and Leader of Opposition acknowledged that the PEC is only an integrated service contract to boost production from the matured fields and neither intended for privatization nor sale of any oil fields. He also advised to bring more awareness about the PEC.
Referring to the suggestions of the MLA and Leader of Opposition to bring more awareness about the PEC, Asset Manager apprised to the MLA that to create awareness among the
people, a meeting had been held with various social groups at office of the SDO (Civil), Nazira on August 18, chaired by SDO (Civil), Nazira, wherein ONGC officials had explained the concept of PEC to various organizations of the region.
During the meeting, ONGC had explained the concept and salient features of Production Enhancement Contract (PEC), its key advantages and its far-reaching objectives.
It was made clear during the meeting that PEC is only an integrated service contract to boost production from the matured fields and neither intended for privatization nor sale of any oil fields.
The key features of the PEC are that the service providers shall bring comprehensive technologies to improve production at their cost whereas the ownership of the fields shall remain with the ONGC, the communiqué stated.