ONGC awards marginal oilfields to HPCL
The partners in the consortium are M3nergy Berhad of Malaysia, Prize Petroleum Company Ltd and HPCL.
By PTI |
NEW DELHI: Hindustan Petroleum Corp Ltd and its partners have been awarded a contract for the development of offshore fields off Mumbai (known as Cluster 7) by Oil and Natural Gas Corp (ONGC).
The partners in the consortium are M3nergy Berhad of Malaysia, Prize Petroleum Company Ltd and HPCL.
"Prize Petroleum will be joint operator with M3nergy for three-year initial development phase," a senior official said.
HPCL holds 60 per cent interest in the consortium that would develop Cluster 7 fields, holding 38 million barrels of recoverable oil and with a producing life of between 12-15 years of which 10 years would see 'peak production'. Prize has 10 per cent stake and M3nergy the remaining 30 per cent.
M3nergy would be the executor of the project. Prize Petroleum is the upstream company, promoted by HPCL along with ICICI Venture Capital Ltd and HDFC Ltd, to carry out exploration and production of oil and gas.
The official said Cluster 7 could produce as high as 18,000 to 20,000 barrels per day for years. Operating costs are likely to be around 12 dollars per barrel.
Cluster 7 is among the marginal fields ONGC had decided to outsource development work. It had offered 18 onshore fields in the first round and 34 offshore fields in the second round. ONGC signed a formal agreement for Cluster 7 with the consortium of Prize-M3nergy-HPCL.
The official said the development period for Cluster 7 is expected to take 2-3 years. "The estimated life expectancy of the fields is 10 years based on estimated reserves of between 30-40 million barrels of oil. The initial daily production is anticipated to be 15,000 barrels."
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
