Oil and Natural Gas Corporation (ONGC) announced that it has inked a Memorandum of Understanding (MoU) with Reliance Industries Ltd (RIL) to explore the possibility of sharing the latter’s infrastructural facility in the east coast of India.
The MoU aims at working out the modalities for sharing of infrastructure, identifying additional requirements as well as firming up the commercial terms.
This shall not only minimize ONGC’s initial capex but also expedite its field development resulting in early monetization of its deepwater fields adjacent to the fields of RIL.
ONGC, the country’s largest oil and gas producer, has drawn a roadmap to make substantial investment over a period of next 5 years both in exploration and developmental activities, and deepwater exploration and development constitutes a major component of the same. Under this plan, ONGC has a conservative estimate to produce about 6 to 9 million standard cubic meters per day of gas by mid-2017 from G-4, KG-DWN - D & E fields in the first phase.
The companies intend to enter into a formal agreement after conducting a joint study which will be spread over the next nine months.
The MoU was signed by Ashok Varma, executive director, Asset Manager Eastern Offshore Asset, ONGC and Naresh K Narang, senior vice president, Development Projects, Petroleum E&P, RIL in the presence of Chairman Sudhir Vasudeva, director (Offshore) P.K. Borthakur and director (Exploration) N K Verma from ONGC and PMS Prasad, executive director from RIL.
ONGC Chairman and Managing Director Sudhir Vasudeva said that it is a win-win situation not only for both the companies which are striving hard to accrete new reserves and put them on production at the quickest time but also for energy starved nation. Vasudeva and PMS Prasad agreed that it is an uphill task ahead and today’s MoU is just the beginning.
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