ONGC marginal field round

Vol 15, PW 26 (12 Jul 12) News in Brief

Companies interested in bidding to develop discovered ONGC marginal fields can expect a fresh bidding round soon.

ONGC is expected to offer 13 onshore and 13 offshore oil and gasfields for development. “We have sent a file to our corporate material management department,” said an ONGC source.

“They must approve it and it must be checked by our legal department before we issue a tender, probably in the next one and a half months.” ONGC signed service contracts for eight marginal fields in February 2004, followed by contracts for another 14 fields signed in April 2007.

Bidders can market gas from the fields in line with the government’s Gas Utilisation Policy, under which fertiliser and power producers get priority and prices are fixed by the state. However, ONGC’s board has ruled in favour of paying international crude oil rates to service contractors.

But contractors must share 30% of oil and gas sale revenues with ONGC.