ONGC service contracts run into trouble-I: Consortium get its sixth two-year extension
ONGC's much-touted programme of hiring out small and marginal fields through the service contract route to the private sector has turned out to be a failure as is evident from the company's willingness to provide yet another two-year extension of the assessment period for four small fields -- Mulkipalli, Chintalapalli, Magatapalli and Medapadu -- awarded to the consortium of KEI-ROS Petroleum & Energy Pvt Ltd and Apollo Energy Pvt Ltd. 8The extension is being provided till 2019. And this is despite the fact that no significant progress was made on the ground since the last extension. 8The irony is that these fields were leased out in September, 2007, exactly 10 years from now. The original assessment period was until September, 2009. 8Six extensions were already given on some pretext or other. 8Find out more on what was intrinsically at fault in the service contracts handed out by ONGC 10 years ago and why they failed.