Oil India inspired by Dirok model for new GGS

Vol 24, PW 15 (17 Jun 21) Exploration & Production

Oil India is learning from HOEC and its Build-Maintain-Operate (BMO) contract with UK-based Expro for the Hollong Modular Gas Processing Plant (HMGPP) at the Dirok field in Assam.

"HOEC outsourced this to Expro, which is doing a good job," says an Oil India source. He adds Oil India wants a similar Build-Own-Operate-Transfer (BOOT) facility for a new 5m cm/d field gas gathering station (GGS) at its Baghjan oil and gasfield and an oil collecting station and effluent treatment plant at Lakwagaon, both in Assam.

Under this model, whoever wins would invest CAPEX and OPEX to set up and run the facilities for ten years before handing them back to Oil India, leaving Oil India free to focus on its core competence: drilling wells and increasing production. Oil India wants EoIs for the GGS contract at Baghjan by June 15, after inviting offers on May 25 (2021).

For the collecting station at Lakwagaon, it wants responses by June 30 (2021). "Oil India intends to use the services of service providers, agencies or firms with expertise in design, supply, and installation and commissioning including operation and maintenance of a field gas gathering station at Baghjan," says the notice.

Presently, the only facility at the Baghjan PML is a limited capacity Early Production System (EPS) with final processing carried out at the central gas gathering station at Madhuban near Duliajan. "Oil India has always wanted a stand-alone GGS at Baghjan," reports a source.

Six years ago, Coimbatore-based Kavin Engineering bid lowest for a consultancy contract to set up a GGS at Baghjan, but the project has been in limbo ever since. Whoever wins the BOOT tender that follows the EoI process must build the "modular structure" facility within 27 months on a site 25-km from Tinsukia and operate it for ten years "on a 24/7 basis."

Oil India confirms it has identified 60,648-sq metres (45 Bighas) with a brick boundary wall for the proposed new facility.