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Industrial Products India, Industrial Manufacturers & Suppliers
 




 
   
 
 
 

ONGC revising its marginal field

State-run Oil and Natural Gas Corporation (ONGC) is revising its archaic marginal field policy to get better net realisation from such fields. Marginal fields are those discovered fields which are considered uneconomical for development at one point of time under prevailing fiscal, technology or regulatory regime.
In its revised policy, the company makes a case for a higher net realisation of $60 per barrel on oil production from its marginal fields, if the prevailing Brent price is $100 per barrel. At present, the net realisation from its marginal fields stands at $35 per barrel.
The revision also seeks an increase in payment to service contractors to work for the company’s marginal fields. “Our present marginal field policy is so outdated that we do not find contractors to work for us. We want better realisation and we have sought revision in payments to service contractors for developing our marginal fields,” a senior company executive told Business Standard.
The revised policy would require the approval of the government. Due to poor investment returns, ONGC says it is getting difficult for the company to attract contractors to work on its marginal fields. The company says the recent oil price rise has given a new dimension to field development economics and many discovered fields considered unviable earlier are no longer marginal for it.
“Small fields are best handled by service contractors, as they have the time and money to spend on small fields. We have enough on our plate to get into taking care of marginal fields. Big-ticket fields are the ones we are doing on our own,” the official said.
ONGC plans to develop 10 onland fields through service contract and another 20 fields (13 onland and seven offshore: KD, B-174, B-51, SD-4, SD-14, D-12 and D-31) through outsourcing.

The 20 fields have an estimated 10.6 million tonnes of oil and oil equivalent gas which the company says it can recover over 10 years.

 
     
 
   
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