ONGC PUTS 43 PRODUCING FIELDS ON BIDDING
- The 43 oil and gas fields have 1.2 billion oil and oil equivalent gas in-place.
- The objective is to enhance oil and gas production
- New operators are expected to bring in new technology and capital to raise output
- The incremental production will be shared between the New Partner and ONGC
- The winners will be decided on the Highest Present Value of ONGC sharing of the enhanced production profile quoted by the bidders.
- The fields are on-land and located in Gujarat, Assam, Tamil Nadu and Andhra Pradesh
- The 43 fields are clubbed in eleven contract areas for bidding
- Eligible companies (Indian or Foreign), either alone or in consortium can bid
- The initial contract period will be of 15 years with an option to extend it by five years
- Last year, ONGC successfully awarded and contracted 21 fields in the previous bid round
SALIENT FEATURES OF THE ONGC OFFERING:
Complete marketing and pricing freedom to sell oil and gas on arm’s length basis through a competitive basis.
The contractor will be selected on a revenue sharing basis. The revenue will be shared on incremental production over and above the baseline production under Business-As-Usual (BAU) scenario.
The contract period of 15 years with an option to extend by 5 years.
Reduction of 10% in the royalty rate for additional production of natural gas over and above BAU scenario.
Easy to administer Revenue Sharing model-based contract.
Exploration permitted during the contract period including the right to explore all kinds of hydrocarbon.
Contractors will not be required to reimburse any expenses already incurred by ONGC.
Based on the feedback received from the industry, ONGC further relaxed some of the terms production enhancement contracts for its 64 oil-producing fields.
The new operators are expected to bring in new technology and capital to raise output from these mature fields and will get a share of the enhanced production.
ONGC AWARDED 49 MARGINAL FIELDS LAST YEAR
The contract will be for 15 years with an option to extend by 5 years. The contract also includes the right to explore all kinds of hydrocarbon. The operators will also get additional incentives on achieving production higher than the committed incremental production.
ONGC awards 49 marginal fields to seven bidders. The new operators are expected to bring in new technology and capital to raise output from these mature fields. The enhanced-production will be shared between ONGC and the private operators.
ONGC had invited bids for 64 fields clustered in 17 contract areas with 300 million tonnes of oil & gas reserves. 12 companies had made 28 bids for 14 clusters, covering 50 fields.
These 49 awarded fields span across 13 contract areas in four states: Gujarat, Tamil Nadu, Andhra Pradesh and Assam.
ONGC OFFERED 64 MARGINAL FIELDS IN LAST ROUND
in 2019, ONGC, India’s largest oil and gas producer had issued Notice Inviting Offer (NIO) seeking partners for its 64 marginal nomination fields. The objective was maximizing recovery from these fields by infusion of new technology and the enhancement of oil and gas production.
The offer shall allow interested companies to participate in the International Competitive Bidding (ICB) process announced for 17 onshore contract areas comprising of 64 oil and gas producing fields with total in-place O+OEG volume of about 300 MMTOE.
Companies, either alone or in consortium or joint ventures, may bid for one or more contract areas. The bidders are required to fulfil the requisite technical and financial criteria and the bids would be evaluated on the basis of revenue sharing from the incremental oil and gas production.
Bidders interested in studying the data can purchase field information dockets and data packages. Interested companies can access the data viewing facility at Institute of Reservoir Studies (IRS), ONGC, Ahmedabad