ONGC appoints auditors to certify its oil and gas reserves

New Delhi: State-owned exploration and production (E&P) major Oil and Natural Gas Corporation (ONGC) today said it has appointed two international auditors to certify its oil and gas reserves, ahead of a planned share sale early next year, reports PTI.

"We have appointed D&M (DeGolyer and MacNaughton) and Gaffney, Cline and Associates as reserve auditors to value our reserves," ONGC chairman and managing director RS Sharma told reporters at the Economic Editors Conference here.

The government plans to sell 5% of its shares in the follow-on public offer (FPO) in March 2011.

"We are ready for the FPO but not before the first quarter of 2011 calendar year," he said.

ONGC may ask the two reserve auditors to certify reserves in its 15 key oil and gas fields out of the about 150 discoveries it has made in the country.

"Certifying reserves for all the 150 fields will take six to eight months and we do not have that kind of time," he said.

Mr Sharma said ONGC usually gets its reserves audited every five years but this time it is getting a certification in the third year because of the planned FPO.

The proposed 5% divestment in ONGC may fetch the government about Rs 10,800 crore.

Post offer, the government’s shareholding in ONGC will come down to 69.14% from current 74.14%.

"The ministry of petroleum and natural gas has accorded in-principle approval (to the share sale) and the Department of Disinvestment has circulated a note for inter-ministerial consultations," oil secretary S Sundareshan said.

Before the ONGC offer, Indian Oil Corporation, the nation's largest company, will come out with an FPO in January 2011.

"It is proposed that IOC will issue fresh equity capital of up to 10% of its paid up capital along with a simultaneous disinvestment of 10% of the government shareholding in the company," he said.

The government is likely to realise about Rs8,000 crore while IOC will fetch about Rs10,100 crore to meets its capital expenditure requirement.

The government’s holding post fresh issue and disinvestment will come down to 62.65% from the current 78.92%.

Mr Sundareshan said Department of Disinvestment will decide on the timing and slotting of the issues keeping in mind issues like overcrowding the market.

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The Reserve Bank of India and its special perquisites

The apex bank enjoys a hallowed status, is not subject to any external audits, and its officials enjoy a slew of special privileges

Even while the Reserve Bank of India (RBI) protests increased interference and supervision by the Financial Stability & Development Council (FSDC), there may be some serious trouble brewing in its own cadres which could focus much-needed attention to its internal functioning.

As India's monetary authority and banking regulator, RBI enjoys a special status and is not subject to any external audit. This allows it to write in a slew of special privileges for its officials, not to mention lavish expenditure on frequent off-site meetings at luxury resorts. In recent years, there have been even more goodies, because India's position as a growing economic power and major world market has meant more invitations to global conferences and committees and junkets. A recent flashpoint is a decision to apparently hire 200 officers on a contract basis.

Thanks to a standoff with the officers' union (AIRBEA), RBI has not held promotional exams that allow those in the clerical cadre a chance to upgrade themselves to the officers' cadre depriving some deserving candidates of career enhancement.

Interestingly, RBI already has excess 'officers' because of another unusual policy that allows it to promote more people than there are vacancies, if they clear the promotion exams. By its own admission, 3,607 employees have passed such exams in the past three years against only 1,330 vacancies, with the result that it has excess officers.

Being an officer carries prestige and lots of perks. One of these is a hefty petrol allowance, which requires only a 'bogus' declaration, according to a source. Every officer gets 150 litres of petrol a month if he lives within 2 kilometres of the workplace and 250 litres if he lives beyond. Another is an allowance for domestic help for house-cleaning. Both these allowances have been raised significantly, in a recent wage settlement. Other quirky perks include fruit bags (in addition to subsidised lunch) and unlimited mineral water at work and at home (don't RBI officers use water purifiers?) as also unlimited overtime for drivers.
 

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COMMENTS

venkatesan

6 years ago

Lots of facts and fiction mixed up here. Surprisingly not many people have read this post and reacted.

Sanju

6 years ago

I WAS NOT AWARE THAT THERE IS 3RD CLASS COMPARTMENT TOO IN THE RAILWAY FROM WHERE UR SIS WAS TRAVELLING.

Rohinton Khambata

6 years ago

My Sister In Law worked for her 39 years with RBI. She finally retired as General Manager Of Foreign Exchange Dept. with RBI Mumbai. She was entitled to 1st.class Rail pass, and yet she always travelled by 3rd. class from Dadar To Mumbai. She was extremly honest and very strict in her duties.

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