India’s Oil and Natural Gas Corporation (ONGC) has issued a notice that invites partners to further develop oil and gas production from its 64 marginal nomination fields in order to optimise recovery by incorporating new technologies.
According to the notice inviting offer (NIO), interested companies can participate in the international competitive bidding (ICB) process, which has been announced for 17 onshore contract areas.
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The contract areas consist of 64 oil and gas producing fields with a total in-place oil and oil equivalent of gas (O+OEG) volume of 300Mt of oil equivalent.
Companies may bid for one or more contract areas either alone, in consortium or through a joint venture.
According to the company, the bidders will be selected based on revenue sharing, with the revenues being shared on incremental production over and above the baseline production under a business-as-usual (BAU) scenario.
Besides a 15-year term, the contract will have an extension option for an additional 11 years.
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By GlobalDataONGC said if the additional production of natural gas exceeds the BAU scenario, the royalty rate will be reduced by 10%.
Selected contractors will not be required to reimburse any expenditures, which are already incurred by ONGC.
The NIO also states that the company shall provide incentives for achieving production higher than the committed incremental production.
It is inviting the auction through its e-procurement portal.
The bidders can access the data viewing facility at the Institute of Reservoir Studies (IRS) in Ahmedabad, India.
Capable of producing more than 1.26Mboe/d, ONGC owns one-tenth of the total Indian refining capacity.
