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

Andhra Pradesh to Develop 30,000 Women-Led Enterprises by 2025

The Municipal Administration and Urban Development (MAUD) Department is accelerating efforts to create sustainable livelihoods for women in urban areas, in line with Chief Minister Nara Chandrababu Naidu’s goal of fostering one lakh women entrepreneurs by 2025. Under this initiative, the MAUD Department has set a target to establish 30,000 women-led enterprises across towns and cities in Andhra Pradesh. To support this vision, the department plans to establish Micro, Small & Medium Enterprises (MSMEs) for women in TIDCO housing complexes. Vacant plots across 163 colonies have been earmarked ..

Next Story
Infrastructure Energy

G Kishan Reddy discusses mining expansion, clearances with Chhattisgarh CM

Coal and Mines Minister G Kishan Reddy met Chhattisgarh CM Vishnu Deo Sai on Friday to expedite land acquisition and environmental clearances for mining projects. Reddy, who was on a two-day visit to review operations at South Eastern Coalfields Ltd (SECL), discussed measures to boost mining-led economic growth in the state. Key topics included speeding up land acquisition for mine expansions, obtaining quicker environmental approvals, and setting up integrated rehabilitation and resettlement sites. The minister also highlighted the importance of developing critical minerals in the region, alo..

Next Story
Infrastructure Urban

NITI Aayog's Vision for India's Auto Industry

NITI Aayog has launched the report titled "Automotive Industry: Powering India’s Participation in Global Value Chains," offering a roadmap for the country’s automotive future. Released by Shri Suman Bery, Vice Chairman, the report outlines key strategies to grow India’s automotive sector to $145 bn in component production by 2030. India is currently the fourth-largest automobile producer globally, but with only a modest three per cent share in the global automotive component market. The report emphasises the need to strengthen India’s position through competitive manufacturing, skill d..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?