ONGC sets marginal fields bid for 17th November

Vol 10, PW 15 (16 Nov 06) News in Brief

ONGC has set 17th November as its latest deadline to receive bids for service contracts at 18 onshore marginal fields.

The earlier deadline was 29th September. ONGC has not accepted a demand from bidders that the crude oil price should be more than $35 per barrel.

In a new set of clarifications, ONGC says oil or condensate should be delivered at the delivery point mentioned in the bid documents. As for any gas produced, ONGC will sell its share back to the bidder at $4.75 per mmbtu inclusive of compression charges and taxes.

If ONGCs facilities and piping network are used to transport gas to different locations, these will be made available on a common carrier basis and ONGC will charge the bidder a mutually agreed fee. This is ONGCs third tender for marginal fields, and the second one for onshore fields.

Located in Assam, Andhra Pradesh, Rajasthan and Tamil Nadu, these 18 fields are considered uneconomical for ONGC to develop itself.