Date:22/03/2006 URL: http://www.thehindubusinessline.com/2006/03/22/stories/2006032202490200.htm

Back ONGC to revamp facilities in Assam

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Invites expressions of interest from global firms

Renewal package
ONGC to spend Rs 2,500 crore to renew the facilities.
The investment is to reverse the declining trend of production.
Package involves replacement, revamping and expansion of equipment and infrastructure.

New Delhi , March 21

Oil & Natural Gas Corporation Ltd (ONGC) today said that it has drawn up a blueprint for investment of around Rs 2,500 crore ($555 million) to renew its aging facilities in Assam.

According to a statement issued here, the company said that this investment was a part of mega renewal package being termed Assam Renewal Project involving a total outlay of around Rs 4,000 crore.

Expressions of interest have been invited from globally established firms for taking up the complete renewal job on a turnkey basis, the company statement said, adding that ONGC intends to start work immediately after monsoon, and the total project is scheduled to be completed in three years.

The prime objective of this project is to reverse the trend of declining production from the matured oil fields, where ONGC began its search for oil way back in 1957, the company said. It added that many of the surface facilities in the oilfields of Assam are more than 20 years old.

Renewal package

Considering the future production profile of these fields, these surface facilities need major upgradation and expansion for sustained and trouble-free operations in the coming years, the company said. The renewal package involves a comprehensive replacement, revamping and expansion of equipment and infrastructure in Assam. Installation of advanced process control and communications systems, introduction of latest health, safety and environment systems, are also part of the renewal package.

Network of facilities

ONGC's network of surface facilities in Assam spans 22 group gathering stations, three central tank farms, eight gas collection plants, two enhanced oil recovery facilities, three captive power plants and nearly 2,500 km of pipelines.

This network of facilities is connected to 612 producing wells and 150 water injection wells.

The first discovery was the Rudrasagar field in Sivsagar district in 1960. Over these five decades, ONGC has made 34 oil and gas discoveries in Assam, generating 786 million tonnes (mt) of in-place oil and oil equivalent gas reserve.

This original-Oil-in-Place (OIIP) of Assam of 786 mt has ultimate recoverable reserves of 235.95 mt.

Out of this, 78.68 mt has already been produced, leaving a balance of 157.27 mt to be produced.

The current production is 1.4 mt per year, which is expected to go up to 3 mt in the next three to four years, the company said.