The Comptroller and Auditor General has pulled up state-owned Oil and Natural Gas Corporation for not placing desired emphasis on discovering oil and gas and being tardy in monetising its discoveries.
CAG's report on Hydrocarbon Exploration Efforts of ONGC, which was tabled in Parliament today, expressed concern at the company's lack of adequate efforts and results in new fields and wanted the Oil Ministry to reset annual targets set out in memorandum of understanding that the firm signs with the government.
"ONGC did not place the desired emphasis on its core exploration activity. Coupled with the low priority on exploration are the anomalies in MoU target setting and reporting as well as performance measurement which
can potentially mislead the stakeholder," it said.
CAG said ONGC showcases a healthy reserve replacement ratio while production continues to remain static.
"ONGC was also tardy in monetising its discoveries which contributed to low production," CAG said.
"While external benchmarking of performance was not done, nationally ONGC had among the lowest efficiency in drilling compared to private as well as central public sector enterprise (Oil India Ltd) which led to non-achievement of work commitments and payment of liquidated damages," it said.
The official auditor also noted several deficiencies in operations (procurement, hiring and contracting).
"Though ONGC operates in a field of cutting edge technology, it did not have a system of independent assessment of its technical capacity which fails to assure its stakeholders," it said.