ONGC marginal fields deadline put back again

Vol 10, PW 12 (05 Oct 06) News in Brief

ONGC has unexpectedly pushed back to 17th October the bid deadline of its third tender to outsource the development of marginal fields.

ONGC tells us the deadline has been extended because of internal debate on clarifications sought by potential bidders. Bidders reject ONGCs insistence on a $35 per barrel cap on oil produced from the fields in a climate of soaring prices for oilfield services.

Retorts ONGC: We are being paid around $40 for crude produced from Mumbai High. How can we pay more to contractors Another important issue is the freedom to sell gas from the ONGC fields to third parties.

ONGC wants all the gas to be used for captive consumption or to generate local power. This issue is also being discussed by the ONGC board, we hear.

It is not so simple. Can we allow someone to sell gas at market prices when we cant sell our own gas at market prices ONGC is paid a government-fixed rate for gas produced from the Mumbai High and other fields.