ONGC drops D&M for Ryder Scott at Deen Dayal

Vol 19, PW 22 (14 Jul 16) Exploration & Production

ONGC has scrapped plans to hire DeGolyer and MacNaughton and is instead planning to appoint Ryder Scott as it reluctantly continues talks to buy 50% in the KG-OSN-2001/3 permit from GSPC.

"Last month (June) an Executive Committee note was prepared to hire D&M to assess the Deen Dayal reserves," reports an ONGC source. "It was even approved but later our management decided to drop DeGolyer and hire (Houston-based) Ryder Scott.

" On June 30 a team from ONGC director exploration AK Dwivedi's office travelled to Gandhinagar to meet GSPC to discuss the potential farm-in. "Talks centred on technical aspects of the field," says an ONGC source.

"Commercial discussions have yet to begin." A GSPC source confirms teams from ONGC visited "several" times over the past month or so.

"There was another meeting around June 20," we hear. "Technical details of the field and reserves were discussed.

" Our source says GSPC has sunk Rs19,000cr ($2.8bn) on exploration and development at the field but that ONGC is unlikely to pay this whole amount. Rather ONGC will pay an amount proportional to the percentage it takes in the block.

"We haven't reached that stage yet," he says. In private ONGC sources says the farm-in deal with GSPC "will most likely" go ahead.

"Many in ONGC oppose the deal," we hear. "But it will happen whether we like it or not.