ONGC awards 49 marginal fields to 7 companies amid corona crisis

ONGC late on Thursday night awarded 49 marginal producing oil and gas fields to seven companies under a government plan to raise production from these acreages that are not economical for the state-run flagship explorer.

The awarded fields make up 13 onshore contract areas spread across Gujarat, Andhra Pradesh, Tamil Nadu and Assam, the company said in a statement but did not identify the winners.

The winners were selected through an international competitive bidding for 17 onshore contract areas.
ONGC had invited bids for partnership to raise production from 64 marginal fields that were given to the company by the government without bidding. Being small in size, these fields are uneconomical for a large company for ONGC.

The government had originally planned to farm out these fields but later changed tack ans asked ONGC to induct partners with a view to ramp up production from these fields.

ONGC had invited bids in June last year. The fields are being given on revenue-sharing basis, with the revenue being shared on incremental production over and above the baseline production under business-as-usual (BAU).

The selected contractors will not be required to reimburse any expenditure on the fields already incurred by ONGC.

Times Of India
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