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ONGC invites partners for enhancing production from 64 marginal fields
Oil and Natural Gas Corporation (ONGC), the country’s largest producer of oil and gas has invited partners to help the company enhance production from 64 marginal fields, the company said in an official statement today.
“ONGC announces Notice Inviting Offer (NIO) seeking partners for enhancement of oil and gas production from its 64 marginal nomination fields with the intention to maximize recovery from these fields by infusion of new technology,” the statement read.
According to the release, the offer shall allow interested companies to participate in the International Competitive Bidding (ICB) process being announced for 17 onshore contract areas comprising of 64 oil and gas producing fields with total in-place Oil and Oil Equivalent of Gas (O+OEG) volume of about 300 Million Tonne Of Oil Equivalent (MMTOE).
The contractor will be selected on revenue sharing basis, with the revenue being shared on incremental production over and above the baseline production under Business-As-Usual (BAU) scenario. Moreover, selected contractors will not be required to reimburse any expenditure already incurred by ONGC.
Companies can either alone or in consortium or through a joint venture bid for one or more contract areas. Contract period for these contracts will be for a period of 15 years with an option to extend by five years.
Royalty rate will be reduced by 10 per cent in case of additional production of natural gas over and above BAU scenario, according to the statement.
The contract will allow complete marketing and pricing freedom to sell oil and gas on an arm’s length basis.
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