ONGC announces Notice Inviting Offer (NIO) seeking partners for enhancement of oil and gas production from its 64 marginal nomination fields with the intention to maximize recovery from these fields by infusion of new technology.
The offer shall allow interested companies to participate in the International Competitive Bidding (ICB) process announced for 17 onshore contract areas comprising of 64 oil and gas producing fields with total in-place O+OEG volume of about 300 MMTOE.
Companies, either alone or in consortium or joint ventures, may bid for one or more contract areas. The bidders are required to fulfil the requisite technical and financial criteria and the bids would be evaluated on the basis of revenue sharing from the incremental oil and gas production.
ONGC is inviting the bids through its e-procurement portal (https://etender.ongc.co.in). A pre-bid conference will be held at ONGC Corporate Office, New Delhi. Bidders interested in studying the data can purchase field information dockets and data packages. Interested companies can access the data viewing facility at Institute of Reservoir Studies (IRS), ONGC, Ahmedabad.
Salient features of the ONGC offering:
- Complete marketing and pricing freedom to sell oil and gas on arm’s length basis through competitive basis.
- Contractor will be selected on revenue sharing basis. The revenue will be shared on incremental production over and above the baseline production under Business-As-Usual (BAU) scenario.
- Contract period of 15 years with an option to extend by 5 years.
Reduction of 10% in the royalty rate for additional production of natural gas over and above BAU scenario.
- Easy to administer Revenue Sharing model based contract.
- Exploration permitted during the contract period including the right to explore all kinds of hydrocarbon.
- Contractors will not be required to reimburse any expenditure already incurred by ONGC.
- Incentive shall be available for achieving production higher than the committed incremental production.
Source: Company Press Release