Oil and Natural Gas Corporation Limited (ONGC) on 14 April 2016 took over the infrastructure of abandoned Tapti gas field in western offshore from its joint venture partners Reliance Industries and BG.
This transfer of assets in India is first of its kind.
Salient Features of the Merger
• It would save time for the company and an investment worth up to 4000 crore rupees to bring the neighbouring Daman block into production before the schedule.
• ONGC planned to advance gas producing to the August-September period with the infrastructure in place.
• It also planned to lay a pipeline from the Daman field to the Tapti process platform, which is connected by a 70-km pipeline to the company's facility at Hazira.
• It committed an investment of over 8600 crore rupees for the Daman and C-26 cluster projects.
• The two projects are expected to produce 11 million cubic meters of gas and 11000 barrels of condensate per day at their peak.
• The Mid and South Tapti fields were awarded in December 1994 under the production sharing contract (PSC) regime to a consortium of ONGC, BG and Reliance.
• The consortium was decided to abandon the fields in 2015 after the end of their life.
• Normally the infrastructure will be dismantled and removed after a field is abandoned. But in this case, ONGC requested the government to transfer the infrastructure.
• The consortium would continue to operate the Panna-Mukta field, which primarily produces oil which is located 90-kilo meter north-west of Mumbai in the Arabian Sea.
• It currently produces 19000 barrels per day of oil and 5-6 million cubic metres per day of gas.
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When: 14 April 2016
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