ONGC Awards 49 Marginal Fields in India to 7 Companies
Indian state-owned oil company Oil & Natural Gas Corp. Ltd. (ONGC) has awarded 49 marginal oil & gas fields across 4 states to 7 successful bidders.
In January this year, ONGC had invited bids from private sector companies for 64 marginal fields clubbed into 17 onshore contract areas. The fields have cumulative reserves of 300 million tonnes (MMt) or 2.2 billion barrels of oil equivalent (Bboe).
“Through a detailed process of evaluation as per the tender conditions, seven companies have now been awarded 13 onland contract areas spread across the states of Gujarat, Tamil Nadu, Andhra Pradesh and Assam”, ONGC said in a statement, without disclosing the names of the winners.
According to media reports, 13 companies had participated in the bidding round, namely Duganta Oil & Natural Gas Pvt Ltd., Oilmax Energy Pvt Ltd., Deep Industries Ltd., Dravida Petroleum DMCC, Hermes Technologies Pvt Ltd., Shivam Crusher Pvt Ltd., LNG Bharat Pvt Ltd., Udayan Oil Solutions Pvt Ltd., Priserve Infrastructure Pvt Ltd., Syndicate Trading Co., Machinery & Solutions Company Ltd., Advent Oilfield Services Pvt Ltd., and Orissa Stevedores Ltd.
ONGC stated that the contractors were selected on a revenue-sharing basis and the contract period will be for 15 years, with an option to extend by another 5 years. Field revenues will be shared on incremental production over and above the baseline production. Successful companies will have complete marketing and pricing freedom to sell oil and natural gas produced from these fields on an arm’s-length basis.
India currently produces less than one-fifth of the oil it consumes, with annual consumption currently in excess of 5 million barrels per day (MMbbls/d) of oil. As a result, the country imports 4 out of every 5 barrels of oil it consumes, and spent around US$100 billion on hydrocarbon imports last year.