Indian firm ONGC awards marginal oil and gas fields to seven bidders

India’s state-owned Oil and Natural Gas Corporation Limited (ONGC) has placed a notice of award (NoA) to seven bidders in 13 contract areas that comprise 49 marginal oil and gas fields.

ONGC held a bid process in January this year seeking partners for the enhancement of production from 64 small and marginal oil and gas fields.

ONGC clubbed the 64 fields in the Indian states of Gujarat, Assam, Andhra Pradesh, and Tamil Nadu into 17 onshore contract areas that comprise producing oil and gas fields.

These areas have a cumulative 300 million tonnes (Mt) of oil as well as oil equivalent natural gas reserves.

ONGC said in a statement: “Through a detailed process of evaluation as per the tender conditions, seven companies have now been awarded 13 onland contract areas spread across the states of Gujarat, Tamil Nadu, Andhra Pradesh and Assam.

“It is expected with award of these contract areas, the production from these marginal fields would be enhanced.”

ONGC invited bids under the production enhancement contract (PEC), which offers a 10% reduction in the royalty rate for additional production of natural gas.

ONGC serves as India’s largest crude oil and natural gas company and contributes to around 70% of the nation’s domestic production.

This January, ONGC received a total of 28 bids for 50 out of 64 small and marginal oil and gas fields in the first round of bidding.

In September last year, a major fire that broke out at ONGC plant at Navi Mumbai killed at least four people and injured 11 others.