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Schlumberger seeks deviations in ONGC oilfield tender for raising output

Gasoil News - Published on Tue, 19 Mar 2019

Image Source: thestreet.com
PTI reported that New York-listed contractor Schlumberger - the sole bidder in state-owned ONGC's tender for raising oil production from aging fields - has sought several deviations from the bidding norms, including projection of a 26-27 per cent decline in output in next few years. India's leading national oil company launched its initial tender for Production Enhancement Contracts in April 2018 for raising output beyond the business as usual scenario from two aging fields. Schlumberger submitted the only application for Geleki, while ONGC received no bids for Kalol oilfield in Gujarat.

Sources privy to the development said Schlumberger is projecting a 26-27 per cent decline in base production in next few years and has sought several deviations in tender norms for infusing technology to raise output over this base.

The government has been pushing ONGC to hire international oil service companies to raise output from its mature oilfields as it saw the foreign companies as the answer to declining production from ageing fields.

ONGC had shortlisted Schlumberger, Halliburton and GE subsidiary Baker Hughes for raising output from Kalol field in Gujarat and Geleki field in Assam. At the close of bids, only Schlumberger made a financial bid for Geleki field, the sources said. No bid was received for Kalol field.

However, the service providers will be paid a fee for raising output beyond an agreed baseline production. The state-owned form is discussing with Schlumberger the deviations sought by it, according to the sources.

ONGC top brass, they said, are keen to conclude a contract with Schlumberger soon to get the project going. Based on experience of the Geleki bidding, the company plans to bring out similar bidding for few other ageing oilfields.

Meanwhile, ONGC is looking to raise domestic output quickly to meet Prime Minister Narendra Modi's target of cutting import dependence by 10 per cent by 2022.

Source :

Posted By : Rabi Wangkhem on Tue, 19 Mar 2019
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