Taking another look at ONGCآ’s small gasfields

Vol 9, PW 7 (14 Jul 05) Midstream & Downstream
     

ONGC is taking a fresh look at plans to monetise gas from its C-Series marginal gasfields offshore Mumbai.

PETROWATCH learns ONGC hired Engineers India in May to prepare a feasibility study for the development of seven fields: C-22, C-24, C-39, C-23, C-26 B-12 & North Tapti (C-1). EIL has been asked to submit a study by November with details of a proposed landfall point for the gas, pipeline specifications, and a time schedule for field development.

ONGC plans to sequentially exploit the C-Series fields to get sustained gas production. ONGCs western offshore basin estimates that the C-series fields could yield 2m cm/d over 14 years or 2.5m cm/d over 11 years.

ONGC is also reviewing plans to use the gas from these fields and last month set up an internal panel to, validate the viability and establishing the technical feasibility of supplying the gas to Tata Power. The committee will also examine other options.

This wont be the first time ONGC is targeting Tata Power as a potential customer for C-Series gas. Earlier talks stalled when both sides disagreed over price and the production profile.

ONGC wanted between $3.10 and $3.61 per mmbtu but Tata Power was willing to pay only between $2.5 and $3.12 per mmbtu. Before talking to Tata Power, ONGC was talking to the local BSES power station as a potential customer.

Talks with BSES began in 1999 and ONGC began pre-project activities, including preparation of a pipeline route survey and feasibility report. But in December 2002 BSES appeared to change its mind and talks collapsed.

ONGCs most recent move to monetise C-Series gas came in June last year when it invited Expressions of Interest to generate electricity from the C-Series fields, which it would add to its own grid or sell on to the national grid.