<p>Although, the Comptroller and Auditor General (CAG) watchdog has lashed out against the oil ministry for its alleged prejudice towards some privately held oil firms, the ministry has broken its silence to speak up in support of its stand on the matter. In contradiction to the accusation in CAG audit, the ministry has said that it has readily supported the cause of judicious procurement and development of India’s rich oil reserves rather than being a partisan of sorts.</p>
<p>Petroleum ministry officials are of the view that government’s role is to ‘facilitate’ optimum output from each of the oil fields irrespective of the harnesser. The government functions to provide a ‘level playing field’ to both the public and private operators and support the purpose of ensuring nation’s energy security. The CAG, in his recent draft performance audit report of the oil ministry contract partners, had dotted out the undue benefit the ministry had suggestively granted to some players in violation of the preset government norms, denting much loss to the financial interest of the government. Petroleum Ministry, has ascertained that its actions are solely directed towards proper development of hydrocarbon fields and energy security of the nation. For now, the rationality of the claims made by CAG has not been quantified and a final draft of audit report is awaited following its review by oil ministry.</p>
<p>The oil ministry believes that, “Operators of substantial oil and gas discoveries are familiar with the geology of the fields and the government plays a constructive role in supporting them”. For now, Petroleum Minister Jaipal Reddy has suggested reform in its technical arm of directorate of hydrocarbons (DCH) to improve in-house ability to verify claims about exploration cost and any other irregularities that may sprout in future. It has requested CAG to keep an ‘open mind’ about ministry’s response to CAG audit draft which is awaited in a few weeks’ time.</p>
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