Look out for ONGC tender to operate marginal fields

Vol 6, PW 12 (14 Aug 02) Exploration & Production
     

WATCH OUT FOR a tender in the next few weeks calling for interested parties to bid for management contracts to operate ONGC's huge list of idle marginal and isolated fields.

This report learns ONGC has a "reasonable amount of data" for 45 of 96 discovered but unexploited fields that are lying unexploited. Some fields like D1 on the Mumbai Offshore and G1 in the Krishna Godavari will be exploited by ONGC itself, and the rest (out of the 45) will be offered to interested parties in two or three rounds.

"We expect the first round to be a learning curve," reveals a source. "There is a lot of interest in this proposal.

The board has already approved it." ONGC is targeting small exploration and production companies, service contractors and EPC contractors. By next month ONGC hopes to outline its strategy for marginal field development.

We are told dockets for the marginal fields are now being prepared. "These companies will be given access to the dockets and will have to submit technical and commercial proposals for development of the fields in a fixed time frame." ONGC has ruled out equity participation in the marginal fields to any company.

"They will have to produce oil or gas and deliver it to our group gathering stations," reveals a source. "The field and the production from it will be fully owned by us.

In return they will get a share of the profits." When will production begin from these fields By 2005, the third year of the ongoing 10th five year plan. "With this approach most of the marginal fields will be developed and we will be able to realise the upside potential."