Skip to contentSkip to navigation

In support of marginal crude well policy

Amid an aroused brouhaha over the government’s move to hand over 69 oil wells to private companies in Assam, a section of economists have thrown their weights behind the decision.

Talking to Assam Times noted economics Gautom Prasad Baroowah said,” to extract crude for marginal field well is expensive. The government would spend huge money from tax payers fund. The rate of return could be minimal.”

According to Baruah, “instead of incurring huge expenses government can allocate these source of marginal crude well to private party and earn huge money and reinvest it for development of new fields and earn better profit.”
Baroowah observed that vigilance is the price of liberty. Reinvestment must be proper, transparent and efficient.

The Union cabinet recently gave its approval to the Marginal Fields Policy, for development of hydrocarbon discoveries made by national oil companies; Oil & Natural Gas Corporation Ltd. (ONGC) and Oil India Ltd. (OIL). These discoveries could not be monetized for many years due to various reasons such as isolated locations, small size of reserves, high
development costs, technological constraints, fiscal regime etc.

Under the new policy, 69 oil fields which have been held by ONGC and OIL for many years, but have not been exploited, will be opened for competitive bidding. Under this policy, exploration companies will be
able to submit bids for exploiting these oil fields. These oil fields have not been developed earlier as they were considered as marginal fields, and hence were of lower priority.

Author info

AT News's picture

Assam Times Staff

Add new comment

Republish

Republish this content

Random Stories

Nazira MLA takes part at discussion with locals

1 Feb 2012 - 1:33pm | Anup Arandhara
Nazira MLA Debabrata Saikia took part at discussion on Tuesday held at Sukapha Panchayat, near the border area with Nagaland. In this programme Saikia discussed at length problems of the...

Conference on Adivasis held in Delhi

2 Aug 2017 - 12:45pm | Shajid Khan
The development of the Adivasi community will only progress the nation and bring prosperity among the people. This was observed by Faggan Singh Kulaste, Minister of State for Health and Family...

Sahadev Das expelled from BPF

21 Mar 2017 - 8:08pm | AT Kokrajhar Bureau
Sahadev Das, state president of NIBBUS and BPF leader has been expelled from BPF party for involving with Silapothar incident recent in Dhemaji district.BTC Chief Hagrama Mohilary,who is also BPF...