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Monday, Oct 05, 2009
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Business Daily from THE HINDU group of publications Monday, Oct 05, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Petroleum Corporate - Outlook Web Extras - Alliances & Joint Ventures
Richa Mishra New Delhi, Oct. 4 Cairn India, along with its partners ONGC and Tata Petrodyne, may get to develop the discovered Ambe field in Cambay Basin along with ONGC’s North Tapti fields. The Directorate General of Hydrocarbons (DGH) is understood to have agreed to the consortium proposal for the development of the Ambe field along with ONGC’s North Tapti fields, official sources told Business Line. The DGH has also agreed to allow the consortium to retain the Ambe fields, official sources said, adding that “the DGH recommendation has been sent to the Petroleum Ministry.” CB/OS-2 (Ambe field) is a block offered under a production sharing contract (PSC) prior to New Exploration Licensing Policy (NELP) regime. Discussions were initiated by the consortium for the development of the Ambe field in synergy with ONGC’s North Tapti field using the common infrastructure to reduce the project cost which has a bearing on the price of gas. While Ambe field belongs to a consortium of ONGC (50 per cent), Cairn India-operator (40 per cent) and Tata Petrodyne Ltd (10 per cent), the North Tapti field is owned by ONGC. The fields are in close vicinity of each other on the West Coast — Gulf of Cambay. The Ambe field was discovered in January 2001 and was declared commercial in April 2006. The gas production from Ambe is expected to touch nearly 1 million standard cubic meter a day.
Due to a delay in the submission of the development plan of CB/OS-2 by the consortium to DGH, the partners were asked to either relinquish the block or pay liquidated charges and provide a bank guarantee. The consortium had asked the DGH to consider waiving off the condition to pay liquidation charges and allow them to retain the block. Sources, however, declined to give any amount to the charges. On the delay in the submission of the development plan, sources said, considering the marginal nature of the Ambe field and escalating offshore development costs, time extensions for the submission of the development plan was sought from the Government in order to explore ways and means of economically developing the find. “This development plan was for 2007-08, and now in the changed scenario, the cost and economics will need to be reworked,” sources said. Asked by when the consortium expects the gas to start flowing, sources said it would be difficult to predict, “even if we et all the necessary approvals in place, the weather window is closed as of now. So development work can start only some time next year. Guesstimate would be not before 2011-12.” ONGC firms up plans for North Tapti offshore field Cairn-ONGC plan for Ambe, Tapti development More Stories on : Petroleum | Outlook | Alliances & Joint Ventures | Oil & Natural Gas Corporation Ltd | Cairn India Ltd
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