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Corporate Jul 17, 2012

ONGC to invite gas sale bids in Gujarat fields

Ahmedabad: State-run ONGC will begin inviting gas sale bids for three more fields, in Gujarat, called the Ankleshwar asset through an e-bidding process, a company official said.

The Ankleshwar asset has already invited bids for sale of natural gas from three of its fields like Kosamba (SCMD-5000), Kim (SCMD-5000) and Katpur (SCMD-4000) on a fall-back basis of 'as and when available' for a duration of two years, he said.

Hunt for oil. Reuters

These bids have been invited for the sale of a combined 14,000 standard cubic metres per day (SCMD) of gas from its three fields. The pre-bid conference for proposed gas sales from these fields have been fixed between 23 to 27 August.

ONGC's Ahmedabad asset, was the first to invite e-bids for direct sale of gas on non-administered mechanism (APM) prices, from its Gamij field in Kheda district of Gujarat.

The Gamij field is expected to generate a revenue of Rs 5.5 crore annually, for a period of five years.

The unique initiative of providing natural gas to private players and institutions taken by ONGC is likely to benefit SMEs around these fields, besides helping the company monetise its small assets, the official said.

With the bids in place, a total of four ONGC's marginal fields in Gujarat will offer a combined 30,000 SCMD of gas to private players.

The pilot project directs natural gas sales from ONGC's fields in Gujarat, is likely to be replicated at Rajamundry in Andhra Pradesh, Assam and Cauvery basin in Pondicherry, to monetise its marginal fields.

PTI


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