BCG to vet oil exploration agreements
The petroleum ministry has roped in one of the world's leading management consultancy firms, The Boston Consulting Group (BCG), to review current commercial arrangements for exploration and production (E&P) blocks.business Updated: May 16, 2012 23:27 IST
The petroleum ministry has roped in one of the world's leading management consultancy firms, The Boston Consulting Group (BCG), to review current commercial arrangements for exploration and production (E&P) blocks.
The move was seen as necessary in view of the growing discord between the government and operating companies over contracts to develop oil and gas blocks in India, and the negative observations made by the Comptroller and Auditor General (CAG) on these contracts.
“The ministry has mandated BCG to develop a clear understanding of the global context and practices associated with commercial agreements between the government and operators for the exploration of the country’s natural resources,” a senior petroleum ministry official told HT.
BCG will study the current contracts in India and select international documents to draw insights, implications and best practices that suit the Indian context.
When contacted, a spokesperson of BCG told HT that “As per the code of ethics and confidentiality clause, The Boston Consulting Group is unable to disclose or divulge any client and/or work details at this stage.”
A petroleum ministry official said that over the next few days, a senior level team from BCG will meet petroleum minister Jaipal Reddy and officials including petroleum secretary, G C Chaturvedi, the chairmen of ONGC, OIL, OVL, the executive director of RIL, the directorate general of hydrocarbons (DGH), MD of GSPC and bureaucrats from Gujarat.