Cluster 7 contract slated for 25th September
Hindustan Petroleum affiliate Prize Petroleum and M3nergy of Malaysia will sign the Cluster 7 marginal fields contract with ONGC on 25th September.
ONGC chairman RS Sharma will travel to Mumbai for the signing ceremony. Cluster 7 is a set of marginal fields offshore Mumbai won by a consortium of Prize and M3nergy in ONGCs first offshore marginal fields tender.
The contract has already been initialled, reveals a source. All the terms have been frozen.
The signing is just a formality. Prize (10%) and M3nergy (30%) will jointly operate Cluster 7 while Hindustan Petroleum will hold (60%).
The Prize-led consortium will be signing a service contract with ONGC, which will hold title to all the oil and gas to be produced. The consortium has yet to begin any exploration work but after seeing the old 3D seismic from ONGC is confident that Cluster 7 holds 38m barrels recoverable oil, which can be produced over 12 to 15 years.
