 "Crude oil")
However ONGC has not been profitable in reversing the decline in output that has set within the 50-year-old discipline. Photograph: Bloomberg
Oil and Pure Fuel Company (ONGC) won’t give any fairness stake in its flagship Mumbai Excessive oil and gasoline fields to any international firm and is barely looking for assist from international giants like BP Plc to assist reverse declining output from the sector, a prime authorities official stated on Tuesday.
The international firm will get a share of income from incremental manufacturing plus a hard and fast charge for its efforts, whereas ONGC will proceed to be the operator and incur all of the capital and working expenditure in implementation of the technical resolution, the official stated.
All dangers will probably be borne by ONGC, whereas the international companion will get the fastened charge even in case of a failure.
India is greater than 85 per cent depending on imports to satisfy its requirement of crude oil, which is transformed into fuels like petrol, diesel and LPG in refineries, and roughly half of the consumption of pure gasoline, which is used to generate electrical energy, make fertilizers, transformed into CNG to run vehicles and piped to family kitchens for cooking.
Having spent $175 billion on import of oil and gasoline within the fiscal yr ending March 31, 2024, the federal government is eager on elevating home manufacturing to chop reliance on imports.
However ONGC has not been profitable in reversing the decline in output that has set within the 50-year-old discipline.
“Clearly, the manufacturing has been declining. So ONGC is now searching for some technical assist from outdoors,” the official within the ministry of petroleum and pure gasoline stated.
ONGC on June 1, floated a world tender looking for international technical providers suppliers (TSP) with annual income of not less than $75 billion. The TSP must do a complete assessment of the sector efficiency and determine enhancements in addition to implement appropriate technological interventions and practices for enhancing manufacturing and restoration.
Bidders have been requested to cite quarterly incremental manufacturing they’ll allow over the 10-year contract interval, in addition to the proportion share of the income they need from the sale of oil and gasoline produced over and above the baseline manufacturing.
Bids are due by September 15, 2024.
The TSP, who can be chosen on the premise of 1 providing the very best incremental manufacturing and the bottom income share, will even be paid a hard and fast service charge for its efforts, in accordance with the tender doc.
The official stated solely the federal government can promote stake in a nomination discipline like Mumbai Excessive and thus far there is no such thing as a resolution to that impact.
Apart from, these international giants, Saudi Arabia’s Aramco, the world’s largest oil producer, in addition to Chinese language agency PetroChina additionally meet the tender norm however it isn’t clear if they are going to be allowed to bid.
The Mumbai Excessive discipline (beforehand Bombay Excessive discipline) — India’s most prolific oil discipline — lies some 160-kilometer within the Arabian Sea off the Mumbai coast. It was found in February 1974 and began manufacturing on Might 21, 1976.
The sphere hit a peak of 4,76,000 barrels of oil per day and 28 billion cubic meters of gasoline in 1989 and has since seen a gradual decline in output.
It’s at the moment producing 1,34,000 bpd of oil and 13 bcm (lower than 10 million commonplace cubic meters per day) of gasoline — accounting for nearly 38 per cent of India’s manufacturing and 14 per cent of consumption.
ONGC believes the sector nonetheless has a steadiness reserve of 80 million tonnes (610 million barrels) of oil and over 40 bcm of gasoline and therefore wants companions who might help faucet them.
With the sector seeing a gentle decline in output, a stake sale had been thought-about on not less than two events lately.
A high-level committee headed by the then Niti Aayog Vice Chairman Rajiv Kumar in late 2018 thought-about “transferring” western offshore oil and gasoline fields of Mumbai Excessive as additionally some fields in Mumbai offshore, Assam, Rajasthan, and Gujarat to personal/international firms.
However that plan met with robust opposition from ONGC and a few quarters throughout the authorities, three sources with data of the matter stated.
Whereas ONGC opposed gifting away on a platter to personal/international sector what it found after years of toil and spending billions of {dollars} over final 4 a long time, some in authorities weren’t satisfied by the incremental potential toyed with to get the proposal by way of, they stated, including that it wasn’t clear how the incremental output numbers have been arrived at within the absence of any actual basin or discipline examine by the panel.
The oil ministry twice in 2021 advised ONGC to provide away 60 per cent stake, plus working management of Mumbai Excessive and Bassein fields to international firms.
Bassein and Satellite tv for pc (B&S), adjoining Mumbai Excessive, are India’s greatest gasoline fields that have been put to manufacturing in 1988.
The 2021 proposal, too, was resisted by ONGC however with the output persevering with to say no it has now give you the TSP mannequin to get technical knowhow for enhancing output.
ONGC produced a complete of 18.4 million tonnes of crude oil in 2023-24 (April 2023 to March 2024) fiscal yr, down from 18.54 million tonnes within the earlier yr. Fuel output declined 3.2 per cent to 19.974 bcm.
(Solely the headline and movie of this report could have been reworked by the Enterprise Commonplace employees; the remainder of the content material is auto-generated from a syndicated feed.)
First Revealed: Jun 11 2024 | 5:07 PM IST
+ There are no comments
Add yours