ONGC invites bids from global investors, puts mature oil, gas fields on block

State-owned ONGC has invited bids from world oil and fuel firms for endeavor work to spice up manufacturing from its ageing fields because it seems to reverse declining output.

The 15-year Production Enhancement Contract (PEC) would require companies to decide to investing in capital and working expenditure to extend manufacturing, increased than the prevailing baseline output, in line with the tender doc.

A tariff will likely be paid in USD per barrel of oil and USD per million British thermal models for fuel for any incremental hydrocarbon produced and saved over the baseline.

ONGC on October 27, issued the expression of curiosity (EoI) discover providing 15-year PECs to outdoors contractors for an unidentified variety of “mature” fields.

The firm made no point out of oil or fuel discipline names within the EoI discover, however sources mentioned the fields are largely in Assam and Gujarat, the nation’s oldest producing basins.

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“ONGC intends to undertake production enhancement from its onshore mature fields under ‘Production Enhancement Contract (PEC)’ with suitable oil and gas companies of global repute who have technical expertise, financial capability and resources to increase production by improving the recovery from such fields,” the tender mentioned.

Companies, it mentioned, will likely be required to commit funding in capital and working expenditure “to increase production from the existing production by introduction of new technologies.” They must do reservoir modelling, reserves evaluation and execution of a growth plan to boost manufacturing.

All the oil and fuel produced will belong to ONGC and anybody has till December 1, 2020 to reply.

This is the second try by ONGC to induct companions in its ‘mature’ or ageing fields.

On December 28, 2018, it had invited PEC bids for Geleki discipline in Assam and Kalol in Gujarat. But solely Schlumberger responded for Geleki and no bid was acquired for Kalol.

Schlumberger sought deviations which ONGC turned down.

ONGC re-launched the PEC course of for Kalol and Geleki with a request for data (RFI) discover on July 22, 2020.

The authorities has been pushing ONGC to rent worldwide oil service firms to lift output from its mature oil fields because it noticed the overseas firms as the reply to declining manufacturing from ageing fields.

ONGC is trying to increase home output shortly to fulfill Prime Minister Narendra Modi’s goal of chopping import dependence by 10% by 2022.

India at the moment imports about 85% of its oil wants.

Originally, ONGC had on December 7, 2016, signed a Summary of Understanding (SoU) to offer Kalol discipline to Halliburton and Geleki discipline to Schlumberger for elevating manufacturing above the present baseline output.

Though the contracts have been signed in presence of Oil Minister Dharmendra Pradhan, ONGC rescinded them in 2017, on fears of courting controversy for handing fields on nomination foundation.

Thereafter, the corporate in June 2017, floated an expression of curiosity (EoI) from service suppliers for endeavor manufacturing enhancement.

Schlumberger Asia Services, Halliburton Offshore Services Inc and Baker Hughes Singapore PTE Ltd have been shortlisted because the companies have been assembly pre-qualification standards.

Bids have been initially sought by May 25, 2018, however noticed a number of extensions and ultimate bids got here in 2019. At the shut of bids, solely Schlumberger made a monetary bid for Geleki discipline.