ONGC seeks greater clarity for success in oil exploration

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Mumbai, Apr 19 (UNI) Oil and Natural Gas corporation (ONGC) today sought the Union Government to have greater clarity in tax holiday for oil exploration and development to move forward with its development.

ONGC Chairman R S Sharma, talking to newsmen here, sought the government to end the impasse over issue of oil bonds at the earliest.

He expressed hope that the group of Ministers would resolve the issue at the earliest. He also called for some sort of a permanent mechanism to resolve the issue, though in the same breath, Mr Sharma added that the soaring price of oil was causing adhocism by decision makers.

Stating that the delay was acting as a dampener, he expressed hope that some clarity on the withdrawal of tax holiday on oil exploration and development would emerge in the first week of May, to enable the National Exploration Licensing Policy-VII (NELP-VII) bids to be finally decided.

On the pricing issue, ONGC Director Finance D K Sakkaf said that ONGC had estimated the aggregate loss at 85 dollar per barrel for the whole year 2007-08, while the fourth quarter saw the loss touching 100 dollar per barrel.

The last date for bidding of 57 blocks offered in NELP VII has been extended by about a month.

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