The Ministry of Petroleum and Natural Gas does not see an anomaly in a tie-up between ONGC Ltd and Gujarat State Petroleum Corporation (GSPC) for the latter’s Deen Dayal West block in the Krishna-Godavari basin.

“As far as GSPC and ONGC’s talks are concerned, this is a company-to-company decision. I wish them well. Both are public sector companies. If they come to an understanding keeping their profitability paramount, we don’t have any problem,” said Dharmendra Pradhan, Minister of State for Petroleum and Natural Gas.

Senior Congress leader Jairam Ramesh had on Thursday accused the Centre of trying to force ONGC to buy the Deen Dayal West assets from GSPC.

Responding to the allegations, Pradhan said, “If GSPC had been given the provisions of the production-sharing contract of NELP, if they had marketing freedom, maybe they would have been able to start production.”

Iran gas field offer Pradhan also said Iran is ready to give the Farzad B gas field to an ONGC Videsh Ltd-led Indian consortium on a nomination basis. Talks on the pricing of the gas from the field will be concluded by October, he added.

“Two things will need to be clear. First, our companies should get some return from the investment they make; we are flexible, and don’t seek obscenely high profits. Second, Iran too should get some returns through a royalty or a cess. And the gas price should be viable in today's market,” he added.

Aramco, Total ‘welcome’ The Minister, who was addressing a press conference to share the achievements of his Ministry in the past two years, said global oil majors like Saudi Aramco and Total are looking to tap into the fuel retailing market in India.

“Everybody is welcometo work with the conditions we have. With increased competition, consumers will benefit,” the Minister said.

The Minister unveiled a new unified policy to allot LPG distribution licences. Under the policy, there will be four types of distributorships: urban, rural-urban (or rurban), rural and areas that are difficult to reach.

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