Shell keen on acquiring Mumbai High oil field

NEW DELHI, APRIL 5. After French oil group Totalfina, Royal Dutch Shell is keen on acquiring stake in Mumbai high oil field even as the Petroleum Ministry has shown disinclination for divesting in proven prime property.

A high level delegation of Shell met senior petroleum ministry officials last week with a request to partner Oil and Natural Gas Corporation (ONGC) in offshore Mumbai High oil and gas fields, sources said.

Though Shell, whose Indian operations at present include marketing of lubricants and an under-construction liquefied natural gas (LNG) import terminal in Gujarat, showed urgency of entering into exploration and production (E&P), it did not participate in the just concluded new exploration and licensing policy (NELP)-II.

``Shell is willing to provide its technical assistance and other services to ONGC to help it increase its reservoir yield in Mumbai High," company officials are learnt to have told petroleum ministry officials.

Shell said it was keen on partnering ONGC in the Rs. 7,500 crore redevelopment plan of Mumbai High which would boost recovery rate to about 40 per cent form 26-28 per cent at present, sources said. Mumbai High at present produces about 16 million tonnes of crude oil, including condensate, and over 12 million cubic metres of gas per day.

Petroleum Ministry, however, declined Shell's offer saying the Government has decided not to divest stake in producing oil and gas fields, sources added.

Shell told Petroleum Ministry officials that it wanted to be a significant player in India and funds were not a constraint.

``We are ready to invest a lot for big acreages and would not like to go for small finds as the company worldwide had its presence in big exploratory wells," company officials told government officials when asked to bid for 25 oil and gas blocks being offered under NELP-II.

Shell has a memorandum of understanding (MoU) with Essar group for constructing five million tonne capacity LNG import terminal at Hazira in Gujarat at an estimated cost of Rs. 2,300 crores.

ONGC has already begun implementation of Rs. 5,000 crores first phase of Mumbai High redevelopment programme, sources said.

- PTI

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