Prize and M3nergy begin work at Cluster 7 fields

Vol 10, PW 13 (19 Oct 06) Exploration & Production

Prize Petroleum and partners Hindustan Petroleum and M3nergy of Malaysia have begun work at the Cluster 7 set of marginal fields offshore Mumbai.

On 27th September, the Prize-led consortium signed a service contract with ONGC to develop this cluster of three marginal fields. A few days later, a broad outline of future work and the budget required to carry it out were approved at the management committee meeting.

The consortium is going in for detailed geological reservoir modelling, says an industry source, and independent reserves certification and finalisation of the initial development plan. Tenders will also be issued to hire a conceptual engineering design consultant to be followed later by a tender for a detailed engineering design consultant.

We understand the Prize consortium has started the paperwork to get the approvals required before physical work can begin offshore. The environmental impact assessment study will begin soon, we hear.

Sometime next month (November) we will start filing the various studies with authorities. The consortium plans to use Gujarat as a support and supply base for development and production activity.

Mumbai would have been ideal but it is not possible to get land around the city. In the days ahead, the consortium will also hold a kick-off meeting with ONGC.

Discussions will focus on the delivery mechanism for oil and gas produced from Cluster 7. The consortium wants to deliver the oil or gas to ONGCs ICP platform, through two pipelines one for oil the other for gas each of about 30-km length.

Within the consortium discussions are underway about whether to use a jack-up rig or a platform mounted land rig for drilling. It is nearly impossible to get jack-ups at the time we want it, says a consortium source, so we have identified a platform-mounted land rig.

But a decision has yet to be taken.