ONGC to float tenders worth Rs 8,000 cr

ONGC expects to float tenders for the Rs 8,000 crore surface facility revamp programme in its three onshore assets in Gujarat within a month.

The tendering process is expected to be over in three months.

The three mature assets — Mehsana, Ahmedabad and Ankleswar — contribute a little over one fifth of ONGC's total domestic crude production of 27 million tonne (including the equity-oil contributions from joint ventures in India). “We are in the advance stage of finalising the tender documents. The entire process is expected to be over in three months,” a company source told Business Line.

According to him, the project aims at replacing the old pipelines and other surface infrastructure in the next three years.

“Some of these pipelines are three to four decades old and leakages are common, leading to operational as well as environmental concerns,” the official said.

Apart from pipelines, the company is also investing in expanding the capacities of its effluent treatment plants in the onshore assets. Apart from tacking environmental concerns, this will help the company treat the increasing proportion of water in the well head production of crude — a common phenomenon in mature fields — and inject the same back into the reservoir to maintain the reservoir pressure.

ONGC is at present commissioning a similar project worth Rs 2,500 crore to revamp the surface infrastructure in oilfields in Assam.