Instead of reinforcing ‘Mixed Market’ Oil & Gas Sector in India sending out ‘Mixed Signals’

New Delhi : News is Coming from the Oil Sector that a major development may take place in a PSU Board Appointment. Observers who have been keenly following the rapid developments in the Pipelines Section of Oil & Gas say some positive news regarding Dir Pipelines of an Oil PSU may shortly emerge.

Much speculations have already taken place. What with PNGRB announcing, with great alacrity that the Common Carrier principle would be enforced despite objections from various quarters and common wisdom. It lead credence due to the fact that the Director Pipelines position of a prominent Oil PSU was hanging fire despite the past incumbent having retired a while ago and charge handed over to an ED level officer who is to report to Dir R.

During a dialogue between prominent PSU marketing professionals,recently, a sort of feedback or estimate is emerging that – The Director PLs position is still in the pipeline. Most Oil & Gas veterans are aware of the strategic and core business importance of Pipelines business. The private players have a vital weakness in not having or wanting to have their own Pipelines and have been eyeing PSU Pipelines business for decades. The current developments initiated by PNGRB and government seems to have, at last, brought it within the reach of private players.

Just imagine, if the PSU Pipelines infrastructure for which large and long gestating investments have been done and these were to be simply handed over on a platter to private companies. The PSUs would shortly buckle under the non level playing conditions and become loss making while the private companies would thrive using PSU assets and facilities. It’s a story which Indians are not unfamiliar with. Aviation and Domestic Market loss of PSU OMCs are all too familiar.

For the past several months, rumors had been circulating about major oil companies merging their verticals with others. This has lead to widespread discontentment amongst the compans’ unions, officers association and management, but no satisfactory solution was reached. Morale of the employees is at its lowest.

The situation intensified when the term of Director Pipelines expired and no efforts were made to fill it. Media reports started surfacing about this matter, reaching even the PMO according to sources from NewsIP.And developments are currently unfolding in the matter.

It is expected that some wisdom is bound to prevail and total annihilation of PSU would be avoided. The geopolitical conditions have already started hitting India. Private Oil & Gas players have been sanctioned. Experts opinion is it would be unwise to protect private players by sacrificing Oil & Gas PSUs.