ONGC scraps seismic

Vol 15, PW 19 (05 Apr 12) News in Brief

ONGC has scrapped a tender to shoot 1460-sq km 3D seismic at KG basin deepwater blocks KG-DWN-2004/2 and KG-DWN-2005/1, after failing to resolve a disagreement with sole bidder CGGVeritas.

An ONGC source says CGG was adamant it could not complete shooting all 3D by June 15 as required. “CGG wanted to complete one block by June 15 and the other block during the next fair weather window,” he explains.

“As talks failed, we decided to scrap the tender.” CGG was the only company to respond by ONGC’s March 12 deadline, offering survey vessel Veritas Viking 2 but its price bid was never opened because of the pending disagreement.

ONGC must now face the unpleasant prospect of potentially paying $10m penalty to the DGH for its unfinished Phase-I work programmes. Phase-I at KG-DWN-2004/2 ends on May 6 and ONGC has yet to shoot 1020-sq km 3D.

At KG-DWN-2005/1, where Phase-I ends on January 21, 2013, ONGC must shoot 1227-sq km of 3D and drill three wells.