The three marginal fields of Sirikattapalli, Mulikipalli and Magatapalli operated by KRPEL, in the first phase are producing approximately 65,000 cubic meters of gas per day which will be shared by the ONGC and KRPEL in a 50% ratio each. This is a risk and reward contract which was finalized by the international competitive bidding route, in line with the marginal fields policy promulgated earlier by the MOPNG, where in the service partner KEI-RSOS Petroleum will bring in all the investment and expertise to rejuvenate the depleted fields of the ONGC Ltd and share the produce with the ONGC Ltd in a predetermined percentage. The ONGC will not invest any money in the venture but will hand over the designated depleted fields to the “service partner”. The partner brings in all the investment, absorbs all the risk and share the reward with the ONGC Ltd. 18 such fields were awarded by ONGC Ltd all over India till date and these are the first 3 fields to be monetized and commence gas production.
Speaking on the occasion, Shri Sudhir Vasudeva said, we intend to set up our own power plants, not just gas based, but also power plants based on unconventional energy sources besides wind power, nuclear power plants etc. He said our focus has been on fields with large gas potential, however the recent increase in the gas price has made us to relook at such marginal fields through the Public Private Partnership model. This project at KG basin is a good example of PPP model. This is the second monetisation of a marginal gas field, the first one was from another difficult area – Jaisalmer. We see tremendous potential in this project with an expectation of 3 lakh cubic meters of gas, as there are five more wells to be drilled. Rajahmundry asset has been one of our best assets and hope to see it go from strength to strength. He said ONGC allocates 2% of its profits towards CSR initiatives.
Speaking on the occasion, Shri PK Rao the asset manager of the KG asset has said that the commencement of gas production and monetization of these 3 depleted marginal fields in the KG asset has proven that the marginal fields policy adopted by the ONGC Ltd is a success and he is proud that it has taken place in the KG asset headed by him. Speaking on the occasion, Lieutenant Murthy Jasti the MD of KRPEL has said that it is indeed an honour to be called “partners” of a great organization like the ONGC Ltd and it gives his, small but dedicated group of oil & gas professionals, immense satisfaction that they are able to contribute their bit towards achieving the energy security of our nation. KRPEL has carried out work overs in these 3 depleted fields, used better gas recovery techniques, laid 15 km of cross country pipe lines connecting all the fields and built a state of the art gas gathering station capable of processing 5 lacs cubic metres of gas per day at Ponnamanda village in KG asset. In addition, the KRPEL group has carried out extensive 3 dimensional seismic data acquisition programme in all the 5 fields allotted to it and will shortly commence drilling 5 new appraisal wells in these 5 fields span over 37 sqkm in KG asset onshore. KRPEL is estimating a recoverable reserves of 1.2 billion cubic metres approximately and subsequent to the drilling campaign, expects to achieve a plateau production of 3 to 4 lacs cubic meters of gas per day. The terms of the contract enable KRPEL to use the gas produced from the marginal fields, in it’s own power plant and CNG marketing.
Shri Anil Kamineni, Director and shareholder in KRPEL and other dignitaries participated in the function
