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

development projects.

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

anything extra.

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.

NGS INDIA