Question : Merger of Oil and Gas Entities

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) whether the State-run oil and gas public sector companies have reportedly failed to compete with international and domestic private oil and gas majors and if so, the details thereof along with the reaction of the Government thereto;
(b) whether the Government proposes to merge State-run oil and gas public sector entities to create an integrated firm having the strength to compete with international and domestic private oil and gas majors and if so, the details thereof;
(c) whether the Government has consulted all State-run oil and gas public sector entities for their merger and if so, the details thereof; and
(d) whether certain State-run oil and gas public sector entities have preferred to/intended to remain separate even in case of merger and if so, the details thereof and the response of the Government thereto?
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MINISTER OF PETROLEUM & NATURAL GAS
(SHRI DHARMENDRA PRADHAN)

(a): Oil and gas Public Sector Undertakings under Ministry of Petroleum and Natural Gas have improved their Global Energy Company Ranking. The details of their rankings during the last three years are at Annexure.
(b) to (d): In the Budget Speech of 2017-18 on February 1, 2017, Finance Minister had inter alia stated that “we see opportunities to strengthen our CPSEs through consolidation, mergers and acquisitions. By these methods, the CPSE can be integrated across the value chain of an industry. It will give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders. Possibilities of such restructuring are visible in the Oil and Gas sector. We propose to create an integrated public sector ‘Oil Major’ which will be able to match the performance of international and domestic private sector oil and gas companies”.
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ANNEXURE

ANNEXURE REFERRED TO IN PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 4930 FOR 26.03.2018 REGARDING “MERGER OF OIL AND GAS ENTITIES” ASKED BY SHRI SHRIRANG APPA BARNE, DR. PRITAM GOPINATH MUNDE, DR. SHRIKANT EKNATH SHINDE, SHRI ANANDRAO ADSUL AND SHRI ADHALRAO PATIL SHIVAJIRAO.

Global Energy Rankings of Indian Oil and Gas PSUs under the administrative jurisdiction of Ministry of Petroleum and Natural Gas

Sl.No. Name of PSU 2015 2016 2017
1. Indian Oil Corporation Limited (IOCL) 66 14 7
2 Oil and Natural Gas Corporation Limited (ONGC) 17 20 11
3 Bharat Petroleum Corporation Limited (BPCL) 59 35 27
4 Hindustan Petroleum Corporation Limited (HPCL) 133 48 48
5. GAIL (India) Limited 120 132 106
6 Oil India Limited (OIL) 222 201 232


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