State-owned Oil and Natural Gas Corporation (ONGC) is providing a stake to international corporations in its extremely deepsea gasoline discovery and a high-pressure, high-temperature block within the KG basin because it appears for monetary and technological assist to convey the difficult fields to manufacturing.
ONGC has floated an preliminary tender in search of curiosity of worldwide majors with “requisite technical expertise and financial strength” to affix as companions in improvement of the Deen Dayal West (DDW) block in addition to ultra-deep discoveries in Cluster-III of its KG-D5 space.
Expressions of Interest (EoIs) have been invited by June 16, based on the tender floated by the corporate.
While ONGC had made a gasoline discovery UD-1 within the KG-D5 block in water depth of two,850 metres (virtually 3 kilometers), the agency had in August 2017 paid Rs 7,738 crore for getting 80 per cent stake within the DDW block from Gujarat authorities agency GSPC.
On the one hand, ONGC doesn’t have the requisite know-how and experience to develop the UD discovery, which lies about 150-km from the coast, whereas however it hasn’t had a lot success in DDW block which holds reserves at excessive strain and excessive temperature (HPHT).
ONGC is in search of know-how companions and repair suppliers for the event of the 2 and is prepared to supply an fairness stake to companies , the tender doc mentioned.
It nonetheless didn’t say how a lot fairness stake the corporate will provide.
At the time of the acquisition of stake from GSPC in 2017, ONGC had acknowledged that the acquisition suits nicely with its technique to reinforce pure gasoline manufacturing from home fields at a sooner tempo.
It had plans to make use of GSPC discipline services to convey to manufacturing the discoveries in its neighbouring KG-DWN-98/2 (KG-D5) block.
But the seven wells drilled up to now didn’t yield a lot success. The plan to make use of DDW services too hasn’t materialised.
“Four wells which were completed did not yield good productivity as anticipated and performance was sub-optimal. Severe technical challenges and complications were encountered in other three wells and had to be abandoned,” the tender doc mentioned.
GSPC had 9 gasoline discoveries within the Bay of Bengal block. Of these, three — KG-08, KG-17, and KG-15 generally generally known as DDW fields — had been authorized for improvement.
ONGC had mentioned it desires to revise the sphere improvement plan after firming up the nicely engineering and completion technique for the implementation of latest wells.
“The objective of EoI is to assess the interest level of potential partners (E&P companies, service providers and technology players) to join as partners to carry out revised field development plan,” it mentioned.
ONGC holds 100 per cent curiosity in KG-DWN-98/2 or KG-D5 block within the Krishna Godavari basin. The block sits subsequent to Reliance Industries’ KG-D6 space.
The block, ONGC mentioned, has three units of discoveries – Cluster-I within the northern half, Cluster-II and Cluster-III within the southern half.
ONGC is creating oil and gasoline discoveries in Cluster II by itself. Oil manufacturing is prone to begin by finish of the 12 months and gasoline by May 2023.
“In the year 2006, the well UD-1 made a Miocene biogenic gas discovery at ultradeep water depths,” it mentioned within the tender doc including 5 out of the seven appraisal wells drilled have confirmed the constant presence of 60 metres of gas-bearing sands.
Currently, ONGC is engaged within the preparation of Field Development Plan.
“Considering the inherent knowledge, cost and technology challenges associated with the field, ONGC would like to seek technical expertise to firm up a way forward for future development of UD deepwater portfolio,” it mentioned.
Source: www.financialexpress.com”