CORPORATE
ONGC seeks partners for Deen Dayal field amid poor gas production
- IBJ Bureau
- Jun 24, 2024
After spending close to $1.2 billion and seven years of little success, State-owned Oil and Natural Gas Corporation (ONGC) is seeking partners to rescue the Deen Dayal gas field in the KG basin in Bay of Bengal.
On June 12, ONGC had sought expression of interest from “global oil and gas companies with requisite technical expertise and financial strength to join as partner (with participative interest) for firming up a viable strategy” for the field, according to the tender document.
The field has produced negligible quantities of gas since ONGC had acquired Gujarat State Petroleum Corporation’s (GSPC) 80 per cent interest in the KG-OSN-2001/3 block off the east coast of India in January 2017.
The block contains the Deen Dayal West (DDW) gas/condensate field which was discovered by GSPC almost two decades ago. The Gujarat government company had showcased the field as a promising prospect when it had sold its stake to ONGC in order to cut its debt.
The field, which was initially said to hold up to 20 trillion cubic feet of in-place gas reserves – by far the biggest in any deep-sea field in the country – but later trimmed to a tenth, has proved to be tougher than anticipated.
“A total of seven development wells are drilled till date,” ONGC said in the tender document.
A development well is one that helps produce hydrocarbon from below the earth’s surface or seabed.
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