ONGC uneasy on ownership in deal

Cairn’s principal joint venture partner in India is Oil and Natural Gas Corporation (ONGC).

It is, however, both in its producing fields and in the exploratory assets.

ONGC is troubled over the prospective ownership change at its partner.

It is concerned over the ‘inexperience’ Vedanta has in oil exploration.

Meanwhile, ONGC will not want Vedanta to be the operator after the deal.

That is, with Cairn being the chief operator in the flagship Rajasthan blocks and in Ravva, Lakshmi and Gauri gas fields in Gujarat’s Cambay offshore basin.

It was said that they cannot afford to be careless and they would like to know how this deal would influence the operations of the gas fields.

On the other hand, ONGC is yet to approach the petroleum ministry or Cairn on the issue.

It, however, is set to do so if the company perceives its interests being compromised.

Earlier, it was said that in order to set up a wind power project in Rajasthan, Oil and Natural Gas Corp (ONGC) is planning to invest Rs 650 crore.

It proposes to set up 102 megawatt (MW) capacity wind power project at an estimated cost of Rs 650 crore.

This was said by Minister of State for Petroleum and Natural Gas Jitin Prasada.

Meanwhile, the average annual generation will be in the range of 200-210 million units (one unit is equal to one kilowatt hour).

ONGC, however, is also examining the feasibility of setting up a 501-MW grid connected solar power photovoltaic (PV) project in Gujarat and Rajasthan and some of its own installations.

No time limit has been fixed to finalise the project and would be ONGC''s attempt to finalise the project soon.

He said that ONGC approved development of Cluster-7 and WO-Cluster oil and gas fields in the western offshore.

In the meantime, the estimated in place crude oil reserves in Cluster-7 and WO-Cluster are 35.91 million tonnes and 15.71 million tonnes, respectively.

While, in place natural gas reserves in both the fields are 4.53 billion cubic meter and 15.91 bcm respectively.

ONGC is planning for improved oil recovery (IOR) and enhanced oil recovery (EOR) projects in 15 major fields, including Mumbai High.

On the other hand, the IOR schemes in Mumbai High North, Mumbai High South, Heera Part-1, Neelam, Heera Part-II oil and gas fields of western offshore, Gandhar, North Kadi Phase-I and II, Jotana Sobhasan, Santhal and Kalol fields in Gujarat have been completed.

The facilities have been created for EOR schemes in Sanand, Balol and Santhal (fields) in Guajrat.

The work for other IOR schemes namely Lakwa, Geleki and Rudrasagar (fields) have already started.

Oil and Natural Gas Corporation Limited (ONGC) (incorporated on 23 June 1993) is a state-owned oil and gas company in India.

It is a Fortune Global 500 company ranked 152nd, and contributes 77% of India''s crude oil production and 81% of India''s natural gas production.

It is the highest profit making corporation in India. It was set up as a commission on 14 August 1956. Indian government holds 74.14% equity stake in this company.

ONGC is one of Asia''s largest and most active companies involved in exploration and production of oil.

It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India.

It produces about 30% of India''s crude oil requirement. It owns and operates more than 11,000 kilometres of pipelines in India.