Companies

ONGC issues notice inviting offer to boost production from marginal fields

Our Bureau New Delhi | Updated on June 28, 2019 Published on June 28, 2019

ONGC said the intention is to maximise recovery from these fields by infusion of new technology.   -  Amit Dave

Oil and Natural Gas Corporation has issued a Notice Inviting Offer to enhance oil and gas production from its 64 marginal nomination fields.

A Notice Inviting Offer allows interested companies to participate in the International Competitive Bidding (ICB) process announced for 17 onshore contract areas, comprising 64 oil and gas producing fields, with a total in-place Oil and Oil Equivalent Gas volume of about 300 million tonnes. Companies, either alone or in consortium or joint ventures, may bid for one or more contract areas, a company statement said.

The bids would be evaluated on the basis of revenue sharing from the incremental oil and gas produced. This revenue will be shared on incremental production over and above the baseline production under the Business-As-Usual (BAU) scenario.

An ONGC statement said the intention is to maximise recovery from these fields by infusion of new technology.

The bid winner will have complete marketing and pricing freedom to sell oil and gas on an arm’s length basis competitively, ONGC said.

The contract will be for 15 years with the option to extend it by 5 years. There is also a 10 per cent reduction in the royalty rate for additional production of natural gas over and above the BAU scenario.

Exploration permitted during the contract period includes the right to explore all kinds of hydrocarbons. The contractors will not be required to reimburse any expenditure already incurred by ONGC. There will also be incentives for achieving a production higher than the committed incremental production.

Published on June 28, 2019
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