ONGC’s mature O&G fields on the block
OIL & GAS

ONGC’s mature O&G fields on the block

In a bid to reverse the declining output on mature and ageing oil and gas fields, the government-owned Oil and Natural Gas Corporation (ONGC) has invited bids from global gas companies for undertaking work to enhance production in these areas. Under this 15-year Production Enhancement Contract (PEC), firms will be required to commit to investments in capital and operating expenditure to boost production.

On October 27, ONGC furnished an Expression of Interest (EoI) notice, which proposed to offer 15-year PECs to foreign and non-native contractors for an undisclosed number of the mature and ageing fields. To facilitate this arrangement, a tariff will be paid in US dollars for every barrel of oil and for every million British Thermal Units (BTUs) of gas or any additional hydrocarbons that are produced and reserved over the baseline. While the company itself has not put out any statements for the names of the oil and gas fields that have been enlisted in the EoI, media sources claim that these fields are primarily located in Gujarat and Assam—regions that are largely the oldest O&G-producing basins in the country.

The tender further stated that ONGC wishes to carry out a prompt enhancement of production from its mature onshore fields under the Production Enhancement Contract (PEC) by employing the services of gas and oil companies with a considerable global reputation, resources, financial capability, and the technical expertise to efficiently achieve their objective of bringing about a much-needed recovery of the ageing fields.

Under the stipulations of the PEC, companies will be required to dedicate investment in the capital as well as operating expenditure to make sure that the production witnesses a substantial rise from its existential value by the implementation of novel technologies. The companies are expected to concern themselves with aspects of reserves assessment, reservoir modelling, and the implementation of a development plan to achieve tangible increments in the scale of production. ONGC will be the sole owner of all the gas and oil that will be produced under this arrangement, and anyone willing to partake is expected to share their response until December 1.

This move marks ONGC’s second such foray into inducting partners with the vision of executing a prompt revival of its mature and ageing fields. Earlier, on 28 December 2018, it had solicited PEC bids for Assam’s Geleki field and Gujarat’s Kalol field. However, on that occasion, only Geleki had received a response courtesy Schlumberger, and the call for Kalol had gone unresponded.

In a bid to combat diminishing output from its ageing fields, the government has been pushing ONGC to extend invitations to foreign companies for a while now. To meet the government’s target of cutting import dependence by 10 per cent by 2022, ONGC is aiming to swiftly raise its domestic output to the best of its abilities.

In a bid to reverse the declining output on mature and ageing oil and gas fields, the government-owned Oil and Natural Gas Corporation (ONGC) has invited bids from global gas companies for undertaking work to enhance production in these areas. Under this 15-year Production Enhancement Contract (PEC), firms will be required to commit to investments in capital and operating expenditure to boost production. On October 27, ONGC furnished an Expression of Interest (EoI) notice, which proposed to offer 15-year PECs to foreign and non-native contractors for an undisclosed number of the mature and ageing fields. To facilitate this arrangement, a tariff will be paid in US dollars for every barrel of oil and for every million British Thermal Units (BTUs) of gas or any additional hydrocarbons that are produced and reserved over the baseline. While the company itself has not put out any statements for the names of the oil and gas fields that have been enlisted in the EoI, media sources claim that these fields are primarily located in Gujarat and Assam—regions that are largely the oldest O&G-producing basins in the country. The tender further stated that ONGC wishes to carry out a prompt enhancement of production from its mature onshore fields under the Production Enhancement Contract (PEC) by employing the services of gas and oil companies with a considerable global reputation, resources, financial capability, and the technical expertise to efficiently achieve their objective of bringing about a much-needed recovery of the ageing fields. Under the stipulations of the PEC, companies will be required to dedicate investment in the capital as well as operating expenditure to make sure that the production witnesses a substantial rise from its existential value by the implementation of novel technologies. The companies are expected to concern themselves with aspects of reserves assessment, reservoir modelling, and the implementation of a development plan to achieve tangible increments in the scale of production. ONGC will be the sole owner of all the gas and oil that will be produced under this arrangement, and anyone willing to partake is expected to share their response until December 1. This move marks ONGC’s second such foray into inducting partners with the vision of executing a prompt revival of its mature and ageing fields. Earlier, on 28 December 2018, it had solicited PEC bids for Assam’s Geleki field and Gujarat’s Kalol field. However, on that occasion, only Geleki had received a response courtesy Schlumberger, and the call for Kalol had gone unresponded. In a bid to combat diminishing output from its ageing fields, the government has been pushing ONGC to extend invitations to foreign companies for a while now. To meet the government’s target of cutting import dependence by 10 per cent by 2022, ONGC is aiming to swiftly raise its domestic output to the best of its abilities.

Next Story
Infrastructure Urban

IT Raids on Gujarat Builders Uncover Rs 100 Million

The Income Tax (IT) department's ongoing search at the premises of three builder groups in the state has led to the recovery of more than Rs 100 million in cash and incriminating documents, according to sources. Initially, 34 locations were targeted in the operation, but six additional sites were subsequently included, increasing the total to 40. Sources revealed that during the preliminary investigation, officials uncovered fake loan entries, bogus transactions, and undisclosed investments in land and properties that were not reflected in the final accounts. The full extent of the tax evasi..

Next Story
Infrastructure Energy

Ethanol Blending Hits 14.6%, Saving Rs 750 Billion in Forex Since 2018

Ethanol blending in petrol reached a record 14.6 per cent during the Ethanol Supply Year (ESY) 2023-24, with over 7 billion litres of ethanol blended, representing a notable rise from 5 per cent and 1.88 billion litres in ESY 2018-19. Minister of State for Petroleum and Natural Gas, Suresh Gopi, informed the Rajya Sabha about this development. He noted that the government’s Ethanol Blended Petrol (EBP) Programme had achieved nationwide coverage across all retail outlets as of 2024, up from 43,168 outlets in 2019. According to data provided by the Petroleum Planning and Analysis Cell (PPAC)..

Next Story
Infrastructure Energy

Coal ministry picks applicants for Rs 85 billion gasification scheme

The Ministry of Coal recently announced the selected applicants for its Rs 85 billion Coal Gasification Incentive Scheme under Categories I and III. This initiative is part of the government’s efforts to promote cleaner energy solutions and achieve India’s target of 100 million tonnes of coal gasification by 2030. Under Category I, Bharat Coal Gasification and Chemicals, along with Coal India Limited (both independently and as part of the CIL-GAIL Consortium), have been chosen. Meanwhile, New Era Cleantech Solution has been selected under Category III. The Union Cabinet-approved scheme f..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000