Exploration News
22 FEB 2018

ETEnergyWorld reported that Oil and Natural Gas Corporation (ONGC), Indias state-owned petroleum explorer, said completion of projects in Cluster 2 of a deep-water block in the Krishna Godavari Basin off the east coast may get delayed. Introduction of new policies in the oil mining sector has led to deferment of tendering activities in its Cluster 2 fields of KG-DWN-98/2 block, the company said in a Bombay Stock Exchange (BSE) filing in response to a media report.

ONGCs board had in March last year approved the Field Development Plan (FDP) for the development of fields falling under cluster 2 of the block involving a total capital expenditure of USD 5.076 billion. The project was expected to produce its first gas by June 2019, and first oil by March 2020, with an overall project completion plan June 2020.

The company said that “Subsequent to the approval of FDP, ONGC initiated activities for procurement of information along goods and services required to execute the plan envisaged in the FDP such as with the sequence of drilling, completion of wells, creation of production and processing facilities events in (in both offshore and onshore), transportation pipelines etc. The media report said the firm would not produce first gas until at least the second half of 2020 while oil production will start a year after gas.

ONGC said that “Meanwhile, introduction of various new policies concerning the oil mining sector led to deferment of tendering activities. As of now, the project schedules are being maintained as planned. However, due to very complex nature of the project, there may be a possibility that the schedules may get exhausted which will only be known at a later date.”

It said that despite the changes in policies concerning the oil mining sector, the company is making efforts to execute the projects at the earliest possible time. “Delay in execution, if any, is not ascertainable precisely as of now, the company said in the statement.

An ONGC executive requesting anonymity said the tendering process is now on track. "The delays which took place were primarily due to the Purchase Preference- Local Content policy for the service and goods required in the oil and gas sector as well as policy for providing preference to domestically manufactured iron and steel products, an ONGC official requesting anonymity said.
 


Source :
ETENERGYWORLD