More gas from Gamij to market

Vol 19, PW 13 (10 Mar 16) News in Brief
     

It is raining gas sale tenders in Gujarat.

After issuing tenders for gas from the Gamij, Linch, Nawagam and Nandasan fields, ONGC is now offering an additional 1700 cm/d for five years on a fallback basis or as and when available from Gamij. ONGC began selling tender documents on February 26 and wants bids in on April 25.

"The response so far is good," says a company source. "Any gas is good for local factories." Gas will be supplied from the Gamij GGS-II south of Ahmedabad.

Bidders must quote a premium above the government-fixed price of $3.82/mmbtu on a Gross Calorific Value basis. A pre-bid will be held on March 28 in Ahmedabad.

Expect even more gas tenders as ONGC plans to begin redeveloping Gamij soon. On May 28, 2015, ONGC directors approved a Rs1881cr ($279m) investment to drill 280 wells including 12 horizontal wells at Gamij.

Last year (2015), ONGC hired three 1000-hp rigs - two from John Energy and one from Deep Industries - at an EDR of $10,000 to drill the wells.