Focus denied full 100% control of SGL

Vol 20, PW 15 (20 Apr 17) News in Brief
     

ONGC is having a hard time offloading its 30% stake at the producing SGL field operated by Focus Energy-affiliate Indus Gas and ring-fenced within the onland RJ-ON/6 block in Rajasthan.

Ajay Kalsi-promoted Focus wants full 100% control of the 176-sq km field where Focus affiliate companies hold 70%. But on April 5, a three-member Empowered Committee of Secretaries (ECS) of oil secretary KD Tripathi, finance secretary Ashok Lavasa and law secretary Suresh Chandra turned down the proposal.

ONGC argues that keeping the 30% (held at SGL since June 6, 2008) is loss-making. The proposal was first discussed at a ECS meeting on January 6, 2017.

"At that time the ECS supported Focus," we hear. "But this time the ECS told ONGC to give a better reason for disposing off its stake in a producing field." No date has been fixed for the next meeting and when contacted a Focus source said: "I don't think what you're saying is correct.

The ECS minutes have yet to be signed." SGL currently produces 42m cf/d (1.2m cm/d), according to the Indus Gas annual report for fiscal year 2015-16.