ONGC to take over Tapti gas field facilities

With Tapti output declining rapidly, partners in the Panna-Mukta and Tapti fields have decided to abandon the field

Oil and Natural Gas Corp has agreed to take over a part of the abandoned assets of the western offshore Tapti gas field from its joint venture partners Reliance Industries and BG once output falls to zero.

With Tapti output declining rapidly, partners in the Panna-Mukta and Tapti fields, RIL, BG and ONGC, have decided to abandon the field.

"Tapti abandonment (has) achieved resolution with Government of India," RIL said a presentation to analysts after the company's fourth-quarter results.

Gas output from the field has almost halved to 14.2 billion cubic feet (bcf) in 2014-15 while oil production was 0.2 million barrels, down 22 per cent from previous fiscal.

RIL said: "ONGC will take over Tapti Part A facilities in accordance with Tapti Production Sharing Contract (PSC) along with abandonment obligation."

The other part will be abandoned. "Joint venture (will be) responsible for abandonment obligation for the Tapti Part B facilities," it said.

Abandonment means dismantling and removing infrastructure set up for production of oil and gas.

ONGC official said the company plans to use the Tapti field assets, which include sub-sea pipelines and gas gathering stations as well as process platform, to advance production of gas from its neighbouring Daman field.

The assets include Tapti gas processing platform, which received gas from sub-sea wells, removes water and other impurities before transmitting it to onshore.

ONGC will lay a small length of pipeline from the Daman field to the process platform, which is connected by a 70-km pipeline to its facility at Hazira.

The official said the company is investing Rs 5,219 crore in bringing to production the Daman gas fields.

Production is expected by July 2016 at the rate of 2 million standard cubic meters per day and peak output of 8.35 mmscmd of gas and 9,286 barrels of condensate per day is likely by 2018-19, he said.

ONGC holds 40 per cent interest in the Panna-Mukta and Tapti fields while RIL and BP have 30 per cent each.

The joint venture will continue to operate the Panna-Mukta field, which primarily is an oil bearing field located 90-km north-west of Mumbai in the Arabian Sea. It produced 7.2 million barrels of oil and 70.7 bcf of gas.

According to RIL, the oil production from Panna-Mukta was almost flat while gas registered 8 per cent increase.

Primarily gas-bearing Tapti field is located 160 km north-west of Mumbai and is currently producing about one million standard cubic meters per day and even this output is expected to taper off to zero before the year end.

The Panna-Mukta fields are expected to stay in production till fiscal 2019.