ONGC to offer medium-sized fields to pvt operators on the lines of DSF

New Delhi: State-run Oil & Natural Gas Corporation (ONGC) is going to offer medium-sized fields on the lines of the Discovered Small Fields (DSF) to private operators in a bid to enhance its production. ONGC’s Director (Production) Pankaj Kumar, while speaking during a session at Urja Varta 2024 on July 11 said that the oil and gas major’s focus is now on monetising small and marginal fields as soon as possible.

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“ONGC is planning to bring in private operators for medium-sized fields, just like we have been doing for Discovered Small Fields. We are in the process of working out the finer details,” Kumar told PSU Watch.

Discovered Small Fields (DSF)

DSF was launched in 2016 and since then, three rounds have been completed. The idea behind bringing in DSF was to develop and monetise small-sized fields, which had been discovered by ONGC but not developed because it offered little financial incentives for the company. While ONGC retained the ownership of these assets, they were handed over to private opeartors for development and monetisation on a revenue-sharing contract. In the first round of DSF, 67 discovered oil and gas fields that were clubbed into 46 contract areas were awarded. These fields had an in-place resource potential of 45 million tonnes of oil and oil equivalent gas.

In August 2018, DSF-II offered 25 contract areas that were made up of 59 fields. These had an in-place resource potential of 190 million tonnes of oil and oil equivalent gas. In June 2021, DSF-III offered 32 contract areas, comprising 75 fields with inplace resource potential of 232 million tonnes of oil and oil equivalent. In May this year, two discovered oil and gas fields in Mumbai offshore and a coal bed methane field in West Bengal were bid out under DSF regime.

ONGC’s oil and gas production have been on the decline for the past several years as some of its oldest oil fields mature. The oil and gas major, which is responsible for 80 percent of India’s total oil production, is pulling all punches to increase its production. Recently, ONGC floated a unique tender, seeking a global technical service provider for increasing oil and gas production from its ageing Mumbai High field.

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