ONGC and BG disagree on Tapti decommissioning

Vol 17, PW 24 (17 Jul 14) Exploration & Production

Tapti will be the first offshore field to be decommissioned in India so it's hardly surprising joint operators BG, ONGC and Reliance are having a hard time agreeing how to go about it.

ONGC met BG and Reliance in Delhi this month (July) to resolve a dispute over who should bear the $90m cost of dismantling the offshore Mumbai field's two process platforms and associated spur pipelines. All attempts to reach a consensus so far have been unsuccessful.

BG and Reliance argue they should not pay anything as ONGC wants to continue using the platforms and pipelines for oil and gas from the nearby Daman and C-Series fields. Yet ONGC managers argue it should not bear the costs exclusively as the infrastructure has been used by the JV for many years.

"The TPP process platform is about 20 years old and TCPP is seven years old,” says an ONGC source. “We cannot get a full life’s work out of them.

” For now the DGH, the ultimate owner of the license, is silent. A DGH source says it wants ONGC and BG to resolve the matter themselves.

"Neither company has officially written to us because I guess neither wants to put this on record and precipitate the issue,” he says. “Only after we receive an official letter can we take a stance.