ONGC has been formally handed over the physical infrastructure and assets of the Mid & South Tapti field in the western offshore of India, the company said in a statement on Wednesday.
The statement added that a formal agreement – Tapti Asset Transfer Agreement – was signed by the former joint venture owners of the field on April 12.
The Mid & South Tapti field was awarded by the government in 1994 under the production sharing contract regime to a joint venture of ONGC, British Gas and Reliance Industries. ONGC held 40 per cent stake in the venture while the other two owned 30 per cent stake each.
Subsequently, the joint venture firm informed the government of abandoning the Tapti field and the associated facilities upon cessation of production.
“ONGC conveyed its interest in utilising a part of the Tapti facilities for use in its adjacent Daman Development and C-26 Cluster Development Projects. Accordingly, the government decided to handover the indentified facilities to ONGC as government nominee in line with the PSC provisions,” the statement said.
“ONGC has committed an investment of over ₹ 8,600 crore towards Daman Development project and the C-26 cluster development project to enhance the production of natural gas and condensate from its Daman Block in the Arabian Sea. The production from these two projects is expected to start in the second quarter of the current financial year, 2016-17 with estimated peak production rate of about 11 mscmd of gas and 11,000 barrels of condensate per day,” the statement added.
While ONGC has already started construction of 10 well head platforms, one riser platform, subsea pipelines and other facilities for the Daman and C-26 cluster development, the availability of the Tapti Process platform with necessary modifications will help production of gas as per schedule.
“This demonstrates that facilities no longer required by an exploration and production operator, can be optimally used by another operator to expedite the field development activities and reduce the capital expenditure burden,” ONGC said.
Source: The Hindu Business line
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