ONGC to Use PMT JV's Abandoned Facilities for Daman Project Offshore India
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?
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.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension