Halliburton doubts ONGC mature fields tender

Vol 15, PW 25 (28 Jun 12) Exploration & Production

After waiting nearly two years Halliburton and other private companies are growing disillusioned with an ONGC invitation to boost oil production from mature Gujarat fields.

“This exercise should have only taken six or seven months,” says a Halliburton source. “We’ve repeatedly followed up with ONGC who keep telling us the proposal is on, but we have doubts.

” Eleven companies submitted EoIs to ONGC in November 2010 to take over the Kalol, Nandej, Wasna, Nawagam, Sadra, Mahelaj and Halisa fields at the Ahmedabad asset. Major names in the race include Schlumberger, Weatherford, Baker Hughes, and GSPC-Oilex.

ONGC has made little progress, other than removing 50-year old Kalol from the fields on offer. Kalol was the most interesting field, with 156m tonnes of proved in-place oil reserves.

“We are still interested,” says a GSPC source. “But we’re beginning to think ONGC only wants to gather information (on production technologies) for its own benefit!” When contacted, an ONGC source explains Kalol has been withdrawn only temporarily and might be offered later.

“Kalol is our largest onshore oilfield,” he says. “We have a lot of hydrocarbon extraction work going on so cannot close off portions just now for private investors.

” Companies reject this excuse. “ONGC feels it will have nothing left if it gives Kalol,” adds our GSPC source.

With an area over 300-sq km, Kalol produces 12,000 b/d and 400,000 cm/d of gas, and has 11 group gathering stations. ONGC has drilled over 650 wells at Kalol, from which actual recovery will be just 17% or 18% or between 30m and 32m tonnes.

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