ONGC to join hands with Cairn India

Kolkata: ONGC has firmed up plans for North Tapti offshore marginal gas field in the Gujarat coast. The Rs 580-crore project is expected to produce 1.8 million standard cubic metre of gas a day (mscmd) beginning first half of 2011.

The project is clubbed with the proposed development of Ambe gas field by Cairn India operated CB/OS-2 joint venture at an estimated cost of Rs 300 crore. Located in the same region, Ambe is estimated to produce 1.5 mscmd gas.

Discovered in 2001, the satellite field is surrounded by ONGC’s North Tapti.

According to the joint development proposal, the entire production of ONGC’s North Tapti will be processed at Cairn’s existing operations at Hazira.

ONGC and Cairn have opted the joint development route to optimise the investment in pipeline, processing and other infrastructure in these marginal fields. “The Board of directors of ONGC has approved the North Tapti development plans. The project includes setting up two production platforms and pipeline network connecting Cairn’s Hazira operations. Production from the field is slated to begin before monsoon in 2011,” a company source told Business Line.

It is learnt that CB/OS2 JV would develop one production platform at Ambe.

Apart from gas, the field was expected to produce 7,000 barrels of oil and condensate. The CB/OS-2 JV is currently producing little more than 1 mscmd (36 million standard cubic feet a day) of natural gas and 10,000 barrels of oil from Lakshmi, Gauri and CB-X fields.

Cairn holds 40 per cent operating interest in CB/OS-2. The other partners in the JV are ONGC and Tata Petrodyne.