Nine show interest in ONGC service contracts

Vol 14, PW 10 (04 Nov 10) Exploration & Production

Nine companies are fighting it out to win ONGC service contracts to increase oil and gas production at seven mature onland fields in Gujarat.

They are: established oilfield service providers Schlumberger, Halliburton, Weatherford, and Baker Hughes, as well as, surprisingly, oil companies, including Australian explorer Oilex with GSPC, and Adani Energy alone. A few less known players are also competing: Hamex Oilfield Services, Hydrocarbon Resources Development and a consortium of Mumbai–based financial services company Centrum, Mumbai-based consultancy Trisun Energy, and Oman–based explorer Petrogas.

All turned up to a meeting in Ahmedabad on October 22, called by ONGC to detail what it wants. At the meeting, the managers of ONGC’s Ahmedabad ‘asset’ said ONGC is offering service contracts for the Kalol, Nawagam, Nandej, Wasna, Mahlej, Sadra and Halisa fields (see below).

All lie within a 20-km radius of Ahmedabad and together, ONGC believes they could hold 1.86bn barrels of in-place oil. Of this, just a little over 140m barrels of oil has been produced so far.

All the fields are producing from the Kalol ‘pays’ and the ‘recovery factor’ is barely 10%, as they contain ‘tight reservoirs.’ Currently, the fields only have ‘vertical’ wells with ‘basic hydrofracturing.

’ But ONGC wants contractors to nearly double oil and gas production by using “newer technologies”, including horizontal wells with ‘multi-stage hydrofracturing.’ Interested companies have until November 16 to submit a formal technical proposal including details of how they will share the risk and profit with ONGC.

See below for basic production data at these fields, assuming a 10% recovery factor. Field Production In-place oil (Barrels) Recoverable (Barrels) Recovered (Barrels) Balance (Barrels) Kalol 8400 b/d 980m 154m 94.85m 60.55m Nawagam 1400 b/d 336m 74.9m 42.77m 32.13m Nandej 1050 b/d 119m 14.7m 20.93m 7.84m Wasna 700 b/d 161m 18.9m 12.95m 5.67m Mahlej 140 b/d 39.2m 0.14m 0.07m 0.07m Sadra 70 b/d 154m 1.82m 0.21m 1.61m Halisa 35 b/d 70m 3.36m 0.105m 3.29m