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ONGC awards 49 marginal oil & gas fields to 7 companies

ONGC has awarded 49 marginal fields producing oil and gas to 7 companies under a govt plan to increase production from these fields

  • The 13 contract areas are spread across Gujarat, Tamil Nadu, Andhra Pradesh and Assam

  • The bid process for seeking partners for enhancement of production from 64 marginal nomination fields was held recently

New Delhi: State-run ONGC (Oil and Natural Gas Corporation Limited) has awarded 49 marginal fields producing oil and gas to seven companies under a government plan to increase production from these acreages that are not economical for the oil PSU. “ONGC placed Notice of Award (NoA) to seven successful bidders in 13 contract areas comprising of 49 marginal oil and gas fields,” ONGC said in an official statement released late on May 14 night. The 13 contract areas are spread across Gujarat, Tamil Nadu, Andhra Pradesh and Assam.

‘ONGC expects production from these marginal fields would be enhanced’

The bid process for seeking partners for enhancement of production from 64 marginal nomination fields was held recently. Interested companies participated in the international competitive bidding process for 17 onshore contract areas, comprising of producing oil and gas fields.

“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 the award of these contract areas, the production from these marginal fields would be enhanced,” the statement said.

The backdrop

ONGC had invited bids for partnership to raise production from 64 marginal fields in June 2019. These fields had been given to ONGC by the government without bidding. Since they are small in size, these fields are uneconomical for a large company like ONGC. The Centre had earlier planned on farming out these fields but later asked ONGC to bring in partners in order to ramp up production from these fields.