Oil and Natural Gas Corporation (ONGC) has issued a notice inviting offer (NIO) seeking partners for enhancement of production from its marginal nomination fields for maximising recovery from its producing fields, the company said in a release on Thursday.
“Under the NIO, 11 onland contract areas comprising 43 oil and gas fields with total in-place O+OEG (oil and oil equivalent) volume of about 160 MMTOE (million metric tonnes of oil equivalent) are offered to interested companies through an international competitive bidding (ICB) route. These contract areas are spread across Gujarat, Assam, Tamil Nadu and Andhra Pradesh,” the release said.
According to the release, eligible companies —Indian or foreign, either alone or in consortium with other companies — may bid for one or more contract areas. The bidders are required to fulfil the requisite technical and financial criteria as per the NIO conditions and the bids would be evaluated on the basis of revenue sharing from the incremental production.
It is to be noted that ONGC is inviting the bids through its e-bidding portal by December 3 this year. A pre-bid conference will be held on October 20 and the mode/venue will be announced later. Bidders interested in studying the data can purchase field information docket and data packages. Upon request, the interested companies shall be able to access the data viewing facility at IRS, Ahmedabad and visit the fields, if required.
Salient features of the bidding include: a contract period of 15 years with an option to extend by 5 years, a reduction of 10 per cent in the royalty rate for incremental production of natural gas over and above BAU scenario, easy to administer revenue sharing model-based contract, continuous exploration permitted during the contract period including the right to explore all kinds of hydrocarbon and no past investment/ expenditure incurred by the ONGC to be shared or paid by the contractor.