ONGC offers stake to foreign firms in KG block

ONGC offers stake to foreign firms in KG blockThe Oil and Natural Gas Corporation (ONGC) has offered a stake to foreign companies in its ultra-deep sea gas discovery and a high-pressure, high-temperature block in the KG basin.

ONGC has floated an initial tender seeking interest of global firms with requisite technical expertise and financial strength to join as partners in development of the Deen Dayal West (DDW) block as well as ultra-deep discoveries in Cluster-III of its KG-D5 area. The Expressions of Interest (EoIs) have been invited by 16 June 2022.

While the company had made a gas discovery UD-1 in KG-D5 block in water depth of 2,850 mtr (almost three km), the firm had in August 2017 paid Rs 7,738 crore for buying 80 percent stake in the DDW block from Gujarat government firm GSPC.

ONGC is seeking technology partners and service providers for the development of the two and is willing to offer an equity stake to firms interested.

At the time of the acquisition of stake from GSPC in 2017, the company had stated that the acquisition fits well with its strategy to enhance natural gas production from domestic fields at a faster pace.

It had plans to use GSPC field facilities to bring to production the discoveries in its neighbouring KG-DWN-98/2 (KG-D5) block. However, the seven wells drilled to date did not yield much success. Also, plans to use DDW facilities too hasn’t materialised.

GSPC had nine gas discoveries in the Bay of Bengal block. Of these, three — KG-08, KG-17, and KG-15 had been approved for development.

ONGC is also developing oil and gas discoveries in Cluster II on its own. The oil production is likely to start by end of 2022 and gas by May 2023.

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