ONGC holds urgent Kakinada meeting on 98/2
DK Sarraf and the entire ONGC board will be in Kakinada on the weekend of May 24 and 25 to see how they can accelerate the $7bn development of the company’s flagship KG-DWN-98/2 deepwater block.
ONGC’s original target of beginning production by 2017 is looking increasingly unlikely, admits a source. "We're in the first phase of tendering but are yet to decide how to develop the discoveries," he says.
"Even at full speed we can't begin production before 2020." KG-DWN-98/2 is initially expected to produce 5m cm/d, rising to a peak production plateau of 30m cm/d in two to four years.
The block should produce for 20 years. When contacted, an ONGC director accepts there have been delays.
“Now we must see how to recover lost time," he says. "It's difficult as we don't have the technology and experience to work in water depths of 1200 metres.
” Next month (June) ONGC is expected to open price bids from three of six companies who sent in bids for a $4m tender to design development plans by end-2014 for 10 KG deepwater discoveries: Aker Solutions, Wood Group, and INTECSEA, a WorleyParsons subsidiary. ONGC disqualified Pegasus International and KBR subsidiary Granherne after they failed to submit a bid bond.
UK-based Xodus was disqualified for lack of experience. ONGC hopes to award the contract by July this year.
