Mumbai High, Oct 21:
Oil and Natural Gas Corp is in talks to hire Reliance
Industries’ unutilised production facilities on the east to quickly
bring to production its gas finds in the Krishna Godavari basin.
ONGC
has made nine gas discoveries in its KG block KG-DWN-98/2, which sits
next to RIL’s flagging KG-DWN-98/3 or KG-D6 block. It plans to club
these finds with discoveries in another neighbouring block to begin gas
production from 2016-17.
And instead of putting
separate gas processing and transportation facilities, ONGC is looking
to hire RIL’s under-utilised gas gathering station at KG-D6 fields along
with pipelines that take the fuel to onland as also its processing
plant at Kakinada in Andhra Pradesh, ONGC Chairman and Managing Director
Sudhir Vasudeva said here on Sunday.
“We have
started talking to them on that... they (RIL) are open to that,”
Vasudeva said. “It makes lot of economic sense to share the
infrastructure.”
RIL has pipeline and other offshore
and onshore facilities capable of handling gas output of 80 million
standard cubic meters per day. It is however producing just around 26
mmscmd from the KG-D6 lock which is way below the peak production of
61.5 mmscmd reached in March 2010.
“It makes sense to
all of us. Their (RIL) facilities are lying redundant and we are in
need of infrastructure to produce our gas,” Vasudeva said.
RIL has indicated that KG-D6 production may not touch 80 mmsmcd due to unexpected geological complexities.
“Once we have a clear indication of what capacities RIL can offer, we will firm up our plans,” he said.
Globally oil companies share infrastructure to cut costs on transmission of gas and crude.
ONGC
has found 4.85 trillion cubic feet of gas reserves in nine gas
discoveries it has made in the Krishna-Godavari basin block KG-DWN-98/2.
“The block is targeted for production by 2016-17 and a peak production of 22 mmscmd is envisaged,” Vasudeva said.
Gas from these is proposed to be produced by combining them with a gas discovery in the adjacent block, he said.
G-4
gas discovery in a neighbouring block is planned to be developed along
with finds in the Northern Discovery Area of KG-DWN-98/2.
Once
the government approves the commercial viability of the finds, ONGC
will make a formal field development plan (FDP) outlining the specifics
of producing gas from the find.
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