ONGC takes over Tapti gas field from RIL, British Gas
Govt mediates as JV partners failed to reach consensus on cost of closing
State-owned oil and gas explorer Oil and Natural Gas Corporation (ONGC) has taken over part
of the drilling infrastructure of the abandoned western offshore Tapti gas field from its joint
venture partners Reliance Industries and BG and will use it to produce gas from its Daman fields.
The move will help ONGC to save between Rs 3,000 crore and 4,000 crore required to put up
new offshore infrastructure needed to develop adjacent Daman gas field and C-26 cluster
The transfer of assets has been made to ONGC as government nominee in line with the
production sharing contract (PSC) provisions, an ONGC statement said.
The mid & south Tapti field in western offshore of India was awarded by the central government
in December 1994 under the PSC regime, with participation of ONGC (40 per cent), British Gas
(30 per cent) and Reliance Industries (30 per cent). A decision to abandon the field was taken last
year after cessation of production. But all the joint venture partners were unable to reach a
consensus over the cost of closing the Tapti field.
The fresh plan for ONGC to use Tapti fields facilities has been reached after government
mediation. All the three partners signed a deal on Tuesday that will allow Reliance and BG to
save on the dismantling cost while ONGC will get hold of the infrastructure without paying
ONGC plans to start producing gas from Daman using the abandoned Tapti facilities by
August/September at the rate of 2 million standard cubic metres per day. Peak output of 8.35
mmscmd of gas and 9,286 barrels of condensate per day is likely by 2018-19. The C-26 cluster
will contribute another 3 mmcmd and about 2,000 barrels of condensate per day.
ONGC has committed an investment of over Rs 8,600 crore towards the two projects. “The
construction of 10 well head platforms, one riser platform, subsea pipelines and other associated
facilities are in progress for Daman and C-26 development projects. Drilling rigs have been
earmarked for drilling of 36 wells. Now, with the availability of the Tapti process platform,
necessary modification and construction works will be carried out expeditiously and gas
production can be started from these projects as per schedule,” said an ONGC statement.
Such agreement is the first of its kind in E&P sector in India. This also demonstrates that
facilities no longer required by an E&P operator can be optimally used by another operator to
expedite the field development activities and also to reduce capex burden.