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Pratim Ranjan Bose

Kolkata. Oct 14 Cairn operated CB/OS2 JV and ONGC may submit the proposal for joint development of Ambe and North Tapti satellite fields in Western offshore by the end of this fiscal or early next fiscal.

Ambe is a satellite gas field of Cairn (40 per cent) operated JV in Cambay basin. The other partners in the field are ONGC and Tata Petrodyne. The satellite field was discovered in 2001 and is surrounded by North Tapti marginal gas field under ONGC.

Though Cairn was initially considering development of Ambe on its own, the company later though it prudent to go for a joint development with ONGC to reduce the project cost which has a bearing on the price of gas.

The proposal was duly favoured by the PSU major - which was also exploring means for development of North Tapti at an optimal cost – as well as the Directorate General of Hydrocarbons. Accordingly both the companies sought time from DGH for submission of a joint development plan.

“We (Cairn and ONGC) are now in an advanced stage of finalising the joint development strategy of the Ambe and North Tapti fields. We are hopeful to submit the plan for DGH’s approval in another six months,” an ONGC source confirmed to Business Line. Cairn official sources declined comments on the issue.

According to sources, the proposal, which is now under active consideration, suggests that hydrocarbon produced from North Tapti would be transported to Cairn’s onshore processing facility.

The tariff regime for ONGC’s North Tapti gas would include the transportation and processing charges for using Cairn facility.

It may be mentioned that CB/OS2 JV is currently on a declining production trend as its two two big reserves Lakshmi and Gauri are aging. While a four-well infill drilling programme was recently commissioned to restrict further decline in the production of these two fields, Ambe will sure play an important role in the joint venture’s production profile as and when it starts flowing gas.

More Stories on : Alliances & Joint Ventures | Petroleum | Oil & Natural Gas Corporation Ltd

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