State-owned Oil and Natural Gas Corp. Ltd. (ONGC) reported Wednesday that the Mid & South Tapti field in Western Offshore of India was awarded by Government of India in December, 1994 under the Production Sharing Contract (PSC) regime, with current participation of ONGC (40 percent), British Gas (30 percent) and Reliance Industries (30 percent).
The Panna-Mukta-Tapti (PMT) joint venture informed to the Government declaring their intention of abandoning the Tapti Field and associated facilities upon cessation of production. ONGC conveyed its interest of utilizing the part of Tapti Facilities (comprising of the processing platforms along with the connected export pipelines) for use in its adjacent Daman Development and C-26 Cluster Development Projects. Accordingly, the Government decided to handover the identified facilities to ONGC as Government Nominee in line with the PSC provisions.
The JV members have accordingly signed the Tapti Asset Transfer Agreement on April 12 with ONGC.
ONGC has committed an investment of over $1.29 billion (INR 86 billion) towards Daman Development Project and C-26 cluster Development Project to enhance production of natural gas and condensate from its Daman Block in Arabian Sea. The production from these two projects is expected to start in second quarter of the current financial year, 2016-17, with estimated peak production rate of about 388.4 million standard cubic feet (11 million standard cubic meters) per day of gas and over 11,000 barrels of condensate per day.
The construction of 10 wellhead 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.
Such type of asset transfer agreement is the first of its kind in exploration and production (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 capital expenditure (CAPEX) burden. The signing of this landmark agreement has been possible due to unstinted support from the Ministry of Petroleum & Natural Gas, Directorate General of Hydrocarbons and cooperation between the PMT JV members.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles
From the Career Center
Jobs that may interest you