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Withdrawal of price preference-I: Oil field service providers up in arms

Dec 17: The oil field service providers -- under the banner of the Federation of Indian Oilfield Service Providers (FIOSP) -- are up in arms against the government's decision to withdraw the "price preference" advantage granted to domestic bidders by oil companies.
 8The FIOSP has requested the petroleum ministry for continuation of the "price preference" policy in global tenders arguing that the policy has been in force since 1984 and has immensely contributed to the development and expansion of the Indian oil field sector.
 8The Federation is of the view that if this decision is not reversed, it will negate the Prime Minister's clarion call to "Make in India" and will dampen the efforts of the current government in promoting indigenization and inclusive growth.
 8FIOSP has pointed out that the decision was taken based on inaccurate facts. Neither the PSUs nor the government has suffered any additional costs on account of the policy.
 8Then again, there has been no compromise or relaxation on quality and technology offered by Indian companies because of the policy. On the contrary, there are several instances where Indian companies have performed better than foreign majors in terms of delivery and service quality because of the policy.
 8Also, as argued, the participation of foreign companies have not reduced because of the policy. In the last 25 years, there are hardly any tenders of major oilfield services, where eligible foreign companies who have bid for private contracts have not participated in tenders floated by PSUs.
 8It is pertinent to note that public sector oil companies, on the directions of the petroleum ministry, had withdrawn the "price preference" policy on the ground that that the Indian industry now has fair exposure to global environment and should be able to compete with foreign counterparts without any further protection.

Withdrawal of price preference-II: Other countries provide preference too, says industry

Dec 17:  The oil field service providers have argued that granting a "price preference" advantage to domestic bidders by oil companies is completely in line with the policies followed by most oil producing countries worldwide to spur user country's economy and reduce dependence on foreign companies.
has particularly pointed out that countries like Malaysia and Indonesia promote the concept of "Bhumiputra" or "sons of the soil," whereby it is mandatory that engineering, fabrication and supply of equipment and modules, including LSTK projects, has to be from within the country. This makes it necessary for foreign companies to partner, or work as sub-contractors for local companies, thus giving a boost to domestic companies.
8The Brazilian government enterprise -- Petrobras -- also gives preference to local companies in its tenders for hiring of oilfield services.
Countries like the USA, UK, Norway and Australia, too, have their own regimes protecting local goods and service providers to the oil and gas industry.
 8Not only this, the Middle-East countries also have a compulsory provision for foreign companies to involve local companies while executing contracts in their country.

New gas price: Ministry lays down framework for D6 gas supply

Dec 17: The petroleum ministry has laid down a ppricing framework for the D6 gas so that the supplies do not get impacted as a result of the ongoing arbitration proceedings.
8As per the
mechanism for implementation of the new pricing guidelines for D1-D3 fields, till the arbitration and attendant legal proceedings get completed, the contractors of the block will have to raise invoices on the consumers at a rate of $5.05/mmbtu on a GCV basis (for the period from November 1, 2014, to March 31, 2014) ), converted to an NCV basis. Each of the three contractors (RIL, BP and Niko) will have to raise separate invoices on the consumers in line with the present system.
 8The consumers will pay $4.2/mmbtu (on an NCV basis) to the three contractors. The differential between the prices worked out as per the guidelines converted to an NCV basis and $4.2/mmbtu would be paid to GAIL by the consumers directly to be kept in the Gas Pool Account. The consumers will make the invoice-wise payments to each of the three companies.
 8A copy of invoices raised on the consumers would be sent by the contractors to GAIL as well. The gas major, in turn, will ensure that the differential amount due from the consumers is credited timely to the Gas Pool account maintained by GAIL. In case of any default in payment by the consumers, GAIL will report the matter to the government.
The royalty would be paid on each of the two components of the gas price separately. The companies would pay royalty on $4.2/mmbtu as is being done presently. For the balance amount, the royalty would be calculated and paid by GAIL from the Gas Pool Account on a monthly basis to the government.
The consumers will pay other statutory liabilities such as Sales Tax and Value Added Tax (VAT) on the entire amount, that is, on the price worked out as per the guidelines, to the government.
 8The contractors, consumers and GAIL would maintain invoice-wise record of all disbursements made and reconcile it periodically. For proper reconciliation, each contractor will have to send separate fortnightly statements giving details of all the invoices raised during the period. The statement will also indicate the amount of gas supplied to each consumer by each of the three contractors in the summary form which will have to tally with the sum of individual invoices raised by the contractors.
In case of any discrepancy, the statements will have to be reconciled.
8The contractors will then enter into Gas Sales & Purchase Agreements (GSPAs) with the consumers accordingly.

CGD in Rajasthan: RSGL to develop retail gas infrastructure in Neemrana, Ghilot, Baran and Jhalawar

Dec 17:  After taking over GAIL Gas Ltd's (GGL) CGD authorization licence for Kota and Bharatpur areas, the Rajasthan State Gas Ltd. (RSGL) -- the newly-formed JV between Rajasthan State Petroleum Corporation limited (RSPCL) and GAIL Gas Limited -- is spreading its wings.
8The company has decide to carry out a
techno-feasibility study for setting up of pipeline connectivity with different industrial clusters for meeting the requirement of the ceramic hub in Ghilot, agro-based industries, IID Centre and iron and steel based industries in Baran as well as meeting the demand of medium and small industries in Jhalawar.
The company has asked GAIL, the parent company of its JV partner, GAIL Gas Ltd, to provide the required support for setting up the retail gas infrastructure in the state.
8RSGL has decided to carry out a phase-wise expansion of the natural gas downstream distribution network in the state. While under Phase-I, a mega CNG mother station would be set up at Neemrana, along with a daughter booster station at Kukas (near Jaipur), under Phase-II, CNG networks in cities, such as Jaipur, Ajmer, Sikar and Udaipur would be developed. Under Phase-III, the company plans to meet the needs of natural gas by importing LNG from Dahej for remotely located districts which are at present not covered by pipeline connectivity.
 8The pre-project activities for setting up of a mega CNG station at Neemrana and a Daughter Booster station at Kukas has already been completed.

Petroleum Planning and Analysis Cell-I: Hybrid E&P model suggested

Dec 17: A recent PPAC study -- in consultation with a wide range of experts -- on the type of contract best suited for the E&P sector has suggested a hybrid model that ensures cost recovery upto the exploration and development stage and once the appraisal is approved and the DOC is cleared, the model shifts to a pure revenue or production sharing regime.
Highlights of the recommendations:
8The study has pointed out that as per the current fiscal model in the existing PSCs, cost recovery is a biddable component up to 100% of the admissible contract cost from the total value of production done from the contract area. The study suggests lowering this limit in line with international PSCs. Limiting the cost recovery to the level of global trends albeit at different levels for onshore and deep water could be a way of ensuring that government revenues flow from the initial stage itself.
8The study has also suggested that a hybrid model which ensures cost recovery up to exploration and development stage should be permitted, and post approval of the appraisal and declaration of commerciality (DOC) is cleared, the shift to a pure revenue or production sharing regime should be done. This has been recommended to make the E&P regime attractive enough to facilitate and encourage exploration efforts within the country, given the perception of low hydrocarbon prospectivity.
8The PPAC study has also suggested setting up of a cost benchmark database. Using the robust DGH database, which is readily available for all elements of costs and segments, the study has suggested that benchmarked costs till the stage of DoC approval should be determined and declared upfont for being allowed to be covered for the purpose of cost recovery.
8Availability of a world-class National Data Repository (NDR) has also been suggested as a vital step in improving the rate of exploration in the country.

Petroleum Planning and Analysis Cell-II: Private players shy away from giving data

Dec 17: PPACs struggle for data collection on account of the lack of cooperation from private players has lead to a demand for making the submission of data compulsory.
8Since PPACs inception in 2002, the need for accurate, complete and timely data on oil and gas has assumed critical importance for policy making and analysis.
8The PPAC has complained that there is often a time lag of 2-3 months in submission of refinery related data by private players. Some of them such as RIL, Essar Oil, and ONGC are submitting only partial data while others such as the Bhatinda refinery are not submitting any data at all. 
8Similarly, GSPC and RIL are also not cooperating in the provision of gas required by the PPAC to produce regular reports that are uploaded to its website.
8All this means that there is non-availability of complete data on a particular sector at a given point in time.
The PPAC is not left with inadequate data to to bifurcate indigenous gas from LNG imports, thus creating trouble in arriving at sector wise consumption conclusions.
Disruption in data gathering is severely hampering the discharge of its duties, the PPAC has argued

Petroleum Planning and Analysis Cell-III: "Make collection of statistics compulsory"

Dec 17: The PPAC has now suggested the invocation of The Collection of Statistics Act, 2008 to force companies to part with their oil and gas data
8According to the PPAC, as per Section 3 of the Act "The appropriate Government may, by notification in the Official Gazette, direct that the statistics on economic, demographic, social, scientific and environmental aspects shall be collected through a statistical survey or otherwise, and thereupon the provisions of this Act shall apply in relation to those statistics".
As per Section 2(a) of the Act, PPAC can be empowered to mandatorily collect the data as it can done by an "Agency (that) includes a person or persons engaged by the appropriate Government directly or by outsourcing for collection of Statistics".
8As per Section 2(b) "appropriate Government" means- (i) Any Ministry or Department in the Central Government and as per Section 2(c) of the Act, an "informant means any person who supplies or is required to supply statistical information and includes a owner or occupier or person in-charge or his authorised representative in respect of persons or a firm registered under Indian Partnership Act, 1932 or a Cooperative Society registered under any Company Society Act or a Company registered under Company Act, 1956. 
8Then again, under Section 2(h), "statistics" means statistics derived by collection, classifying and using statistics, specially in or for large quantities or numbers by appropriate Government from statistical surveys, administrative and registration records, and other forms and papers, the statistical analysis of which are, whether in a published or unpublished form.
8Finally, as per Section 3 of the Act, "the appropriate Government may, by notification in the Official Gazette, direct that the statistics on economic, demographic, social, scientific and environmental aspects shall be collected through a statistical survey or otherwise, and thereupon the provisions of this Act shall apply in relation to those statistics".

Petroleum Planning and Analysis Cell-IV: Study pegs petroleum leakage at 50%

Dec 17: An independent all-India study by the PPAC has pegged the leakage of PDS kerosene at a whopping 50.8%.
8The study used the data collected by NSSO during their 68th round of survey of "household consumption of various goods and services" carried out  between July, 2011 and June, 2012.
8NSSO's  unit level data emanating out of its household surveys was used for the study.
8According to the report, estimated diversion of PDS SKO for non-household purposes accounts for 34.8% of the total while the diversion from PDS to the open market is pegged at 16%.
8Whereas the total sale of kerosene during the period was at 9,961 TKL, consumption of only 6,498 TKL has been accounted for (PDS consumption 4,905 TKL; Non-PDS consumption 1,593 TKL) in the NSSO data.
8A similar study by the National Council for Applied Economic and Research (NCAER) earlier had brought out similar alarming numbers.
8The NCAER's report had arrived at estimated leakage numbers across some states such as Bihar, Chandigarh, Delhi, Jharkhand, Orissa and Punjab show leakages at over 50%, while other states reported varying leakages..

Petroleum Planning and Analysis Cell-V:  Snags still being cleared in oil and gas data management software

Dec 17: Snags are yet to be cleared in the Petroleum Planning and Analysis Cell's ambitious oil and gas data management software through which oil and gas companies would upload their data for further processing. The software is meant to provide a holistic and real time perspective on the oil and gas sector production and distribution in India.
8This software is an intrinsic part of the roadmap for implementation of what is being termed as the Data Quality Project in PPAC.
8Based on an MoU signed by PPAC, the Indian Statistical Institute (ISI) had designed the initial software with the help of  a private firm.
Although the software was handed over in September, 2013 and a detailed systems manual was handed over in March, 2014, business users have pointed out several shortcomings in the current software, thereby reducing the effectiveness of the system.
8Of the 15 issues identified, 11 are major issues which require programming in the existing system and they relate to overall logic, more detailed reports, inconsistency in certain sets of reports related to crude oil production, and similar issues. There were several other snags related to refinery shut-downs, secondary processing of data and its linking to production data. Another issue is the incorporation of field-wise production data data for natural gas.
8To ensure that the user requirements are met with, the PPAC has now suggested that the first 11 changes are done by the existing vendor at a one-time cost over the next 4-5 months.
8The PPAC has also suggested that once phase-1 of the project is successfully implemented, the other issues, which are primarily over and above the existing scope of work, can be implemented in Phase-2 of the project.

Petroleum Planning and Analysis Cell-VI: Briefs

Dec 17: 8Recommendations to reduce diesel consumption in the transport sector: The petroleum ministry ahs written a letter to the finance ministry detailing the areas where action can be taken for reducing diesel consumption in the transport sector. The action plan is based on the recommendations of an all-India study on behalf of PPAC by by Nielson (India) on sectoral demand for diesel and petrol.
The recommendations are as follows:
Introduction of energy efficiency parameters (KM/Litre) for all commercial vehicles.
 --Mandatory phasing out of 15 year old inefficient passenger and commercial vehicles.
 --Pollution Under Control (PUC) certification lfor efficient burning of fuel. To prevent fraudulent certificates, all PUC approved certifying agencies should issue PUC forms from a centralized server so that these certificates can be tracked by the enforcing agency from anywhere.
 --Introduce chip-based prepaid smart card for paying toll charges in all toll plazas across the country, which would substantially reduce wasteful burning of diesel due to long wait at the toll plazas.
8Suggestions on improving usefulness of solar lighting system: A recent PPAC study on the usefulness of solar lights in districts of high usage of kerosene for lighting purpose and scope of financing these solar lights through CSR funds of oil companies has made some crucial recommendations.
 --The suggestions include use of flexible options for solar lighting as well identification of districts where they can be launched in the initial phase.
 --Further, a detailed report on utilization of CSR funds of oil companies for solar lighting systems was submitted to the ministry earlier this year, post detailed discussions and deliberations with PSU oil companies, the MNRE and the SECI.Enter Introduction Here

Petroleum Planning and Analysis Cell-VII: Briefs

Dec 17: 8PPAC's involvement in joint study group on LNG: The PPAC is in talks with Ministry of Economy, Trade and Industry (METI), Japan for to partner the multilateral joint study group on LNG. The group includes research institutes from LNG consuming countries.
 --Pertinently, a joint statement announcing the launch of this group was issued post the India-Japan joint study on "Pricing of LNG in Asia-Pacific Market" during 2012-13 by METI and the Indian petroleum ministry.

After persistent follow up, PPAC received the draft recommendations of the multilateral study group from METI in September, 2014 as well as an invitation to participate as an observer from the Indian side during the second meeting of the multilateral study group.
 --However, subsequently, since the final recommendations of the group were expected to be shared in the 3rd LNG Producer Consumer Conference scheduled in Tokyo last month,  the participation of PPAC in the 2nd meeting as observer was not required.
8PPAC report on "India's Oil and Gas outlook" to be released in February, 2015: The first issue of PPAC's ambitious report titled "India's Oil and Gas Outlook" is expected to be released in February, 2015.
The first draft of the issue was submitted in September, 2014 and verification of data and contents is in progress.
 --The first chapter on "Energy balance and importance of oil and gas sector in India" has already been circulated to the editorial board for comments and the other four chapters will follow suit.

Petroleum Planning and Analysis Cell-VIII: Briefs

Dec 17: 8Compliance of ERA report requires active involvement of IEA, various ministries and government agencies: The PPAC has claimed that compliance of all actionable points relating to the Emergency Response Assessment (ERA) report is dependent on the active involvement of no just the the IEA but of other Indian ministries and various government agencies.
 --The PPAC had submitted a list of fourteen actionable points identified from the final report of the ERA, including timelines required for carrying out the activities.
 --However, compliance on all the actionable points is dependent on active involvement of the IEA, other ministries and various other government agencies.
 --The PPAC has, therefore, sought IEA's expertise and cooperation in an MoU proposed to be signed between ministry and IEA.
8PPAC seeks user inputs for improvisations of its existing reports: PPAC has sought inputs from oil marketing companies (OMCs) and the petroleum industry on any modifications and additions to its regular oil and gas sector reports.
 --Responses have been received from Bharat Petroleum Corporation Ltd. (BPCL), Hindustan Petroleum Corporation Ltd. (HPCL) and Gas Authority of India Ltd. (GAIL) and are being considered
PPAC had sought inputs on the following reports:
 --Industry Performance Review (IPR) Report on monthly basis
 --Report on indigenous crude oil production, crude oil processing, production of petroleum products and import / export of petroleum products in the country on monthly basis, and
 --Report on stock trends of major petroleum products in the country on fortnightly basis.

Petroleum Planning and Analysis Cell-IX: Briefs

Dec 17: 8Investment in infrastructure for POL & LPG common user facilities: Thet PPAC has recently submitted its report on investments in the creation of infrastructure for POL and LPG Common User Facilities (CUF).
The report has essentially deliberated on the prospective requirement of POL terminals and LPG bottling plants by oil marketing companies (OMCs) during the next 15 years.
 --Developing a centralized planning mechanism so as to develop these facilities under Common User Facilities (CUF) has been recommended.
8Sectorwise impact of gas price increase and gas demand estimation: A recent study was undertaken by the PPAC on the impact of increase in gas price on various sectors, along with an estimation of natural gas demand.
The report covers the impact of increase in gas price on fertilizer, power, city gas distribution and other sectors and also has natural gas demand projection for the year 2014-15 to 2021-22.
The draft report was discussed with the ministry and a final report will be submitted accordingly.

Audit exceptions in Raniganj CBM block: GEECL awarded six contracts worth more than Rs 45 crore without taking approval from Operating Committee

Dec 17:  TR Chaddha & Co, the audit firm, which audited the books of the Great Eastern Energy Corporation Ltd`s (GEECL) Raniganj CBM block, has pointed out that a total of six procurement contracts (all exceeding $300,000) amounting to more than Rs 45 crore were awarded to different contractors without the approval of the Operating Committee (OC) during 2009-10 and 2010-11.
Of the six contracts, three each were awarded during 2009-10 and 2010-11.
While Compressor System Inc. ($1.8 million), ITECO Oilfield Supply ($0.68 million) and Maharashtra Seamless (Rs 16.5 crore) were awarded contracts in 2009-10, without the approval of the OC, the three firms which were given contracts in 2010-11, were Dongying East Intl. ($0.96 million), ITECO Oilfield Supply ($0.51 million) and Kriti Industries (Rs 5.31 crore).
A total of 19 cases of procurement (9 cases in 2009-10 and 10 cases in 2010-11) were recorded during the two years. However, no discrepancies were observed in the remaining 13 contracts.
The DGH has asked the contractor to explain the reasons for not complying with the provisions of CBM contract.
8Some more audit exceptions observed in the block relate to calculation of royalty and production level payment (PLP), calculation of miscellaneous income vs sales, computation of flared gas, calculation of sale price for CBM/CNG and site restoration fund, among others.

Procurement of potassium chloride-I: Single tender deals with IPL, NOES rejected

Dec 17:  The ONGC's tender for procurement of potassium chloride (KCL) had to be scrapped after a deal could not be finalized with the two potential suppliers, the National Oilfield Equipment and Services (NOES) of Jordan and the Indian Potash Ltd (IPL).
 8After the techno-commercial evaluation of the tender, only NOES was shortlisted for price bid opening. As the final price arrived at after price negotiations was $780/MT (FOB), which was 10.32% higher than that of the last purchase rate (LPR), ONGC decided to procure the chemical from IPL, a joint stock company, which imports KCL in bulk quantity for the fertilizer sector.
 8ONGC's apex Executive Procurement Committee (EPC) placed an order for supply of 8000 MT Potassium Chloride (KCL) on a nomination basis on IPL  with delivery upto December 31, 2014, at a rate of $438.09, including the CST.
 8IPL agreed to supply KCL provided it was exempted from submitting the PBG and the provision relating to liquidated damages (LD) was deleted. IPL also sought 100% payment in advance.
 8In the meantime, NOES reduced the price from $780/MT to $420/MT saying that the rates had come down drastically in the international market. However, it sought similar relaxations as given to IPL.
 8ONGC asked IPL to match the price of KCL as quoted by NOES which was refused by the Indian company.
 8Though the price of KCL offered by NOES was lower than that of IPL, ONGC was not in a position to relax the conditions to bring them at par with the Indian company.
 8As a result, neither IPL nor NOES was considered for placement of the order on a single-tender nomination basis.

Procurement of potassium chloride-II: Tender terms to be modified to bring in more competition

Dec 17: Now that the single-tender deals with IPL and NOES has been rejected, ONGC has decided to review the bid evaluation criteria (BEC) for the contract to generate better competition and lower prices.
8ONGC decided to modify the BEC after it was observed that some of the terms and conditions of the tender, which has been cancelled now, were not acceptable to most of the bidders.
8A fresh open tender will now be invited on an ICB basis for procurement of 20,667 MT of potassium chloride (KCL) pertaining to the requirement of one year only, that is, 2014-15.
 8The tender which has been scrapped now was invited for a period of two years.
 8After the finalization of the fresh tender, a long term Rate Contract (RC) will be signed with the L-1 bidder for supply of KCL.
 8ONGC regularly requires KCL for its drilling operations, the annual requirement of which comes to around 19,000-20,000 MT.

News Briefs

Dec 17: 8India to explore possibility for imports from Russia in national currencies: The following decision were taken during the meeting chaired by the Principal Secretary to the PM on issues related to Russia:
 --The Ministry of Finance (MOF) has been asked to explore possibilities for imports from Russia in national currencies. The Central Banks of the two countries will work out modalities for local currency transactions in consultation with the Department of Commerce and the MOF.
 --The Department of Economic Affairs (DEA) will remain engaged with the Russian side so that a Bilateral Investment Promotion and Protection Agreement (BIPPA) can be hammered out. A delegation from Russia is likely to be invited to hold further discussions on the matter.
8Discovery in Narpuh Sands in Assam: A recent gas discovery in the low resistivity Narpuh Sands, adjoining the Barekuri field, has opened a new exploration play for hydrocarbons in Assam.
 --Oil India Ltd (OIL), the operator, has submitted the requisite information to the DGH on the discovery made in the well -- dubbed well BRK-02 -- in the new reservoir (Narpuh Sands).
 --The DGH, which has reviewed the information, is of the view that the testing result of the well BRK-02 suggests that even a thin sand in the well is capable of producing reasonably good amount of gas from the Eocene.
 --The geological section and the log motif submitted by the operator suggest that there are a number of sand bodies with possible gas, below the tested Narpuh Sands in the well BRK-02.

Tender Briefs

Dec 17:  8Gail Gas invites bids for laying of underground pipelines and aboveground installations in Taj Trapezium Zone: Gail Gas Limited has invited bids or laying of underground PE pipelines and aboveground GI installations for its city gas distribution (CGD) project in the Taj Trapezium Zone (TTZ)
 --Tender documents will be made available on the website from December 18, 2014
 --A pre-bid meeting will be held on December 30, 2014 (at 11:00 hrs)
 --The due date and time for submission of bids is January 15, 2015 (upto 14:00 hrs)
 Click here for more information

8Cairn invites EOI for work-over units and rigs in Rajasthan block: Cairn has invited an EOI for hiring of work-over units and rigs for its Rajasthan block RJ-ON-90/1.
 --Interested bidders must have a minimum of three years of experience of providing work-over units.
 --Interested bidders can submit their offers before December 18, 2014.
 Click here for more information
More tenders: Some more tenders floated by oil and gas companies are:
 --Procurement of complete custody transfer metering skids, Digboi [IOC] Details
 --Repairing and servicing of centrifugal pumps, Assam [OIL] Details
 --Procurement of plug valves, Assam [OIL] Details
 --Procurement of DSA flanges, Karaikal [ONGC] Details
 --Procurement of corrosion inhibitor, Gujarat Refinery [IOC] Details

Additional development of ONGC's Vasai East project-I: L&T beats Swiber

Dec 16: L&T Hydrocarbon Engineering (LTHE) has bagged the ONGC`s contract for additional development of the Vasai East field in the western offshore at a total estimated cost of Rs 899.78 crore.
8Though a total of 16 parties had purchased the tender papers, only two bidders submitted their offers, namely L&T and a consortium of Swiber Offshore (India) Pvt. Ltd (SOIPL) and Swiber Offshore Construction Pte Ltd (SOCPL).
8Upon opening of price bids, L&T emerged as the L-1 bidder with a quote of Rs 899.78 crore (equivalent to $144.87 million). The Swiber consortium had quoted Rs 916.88 crore (or $147.62 million).
8As the rate quoted by L&T ($144.87 million) was found to be 7.1% lower than the ONGC`s internally revised cost estimate of $155.95 million, the price was considered as reasonable.
8The Vasai East field, discovered in 2001, and located in the Heera-Panna-Bassein block of the Mumbai Offshore, was put on production in May 2008.
8The field has 14 oil producers and two water injectors. Presently, the field is producing about 5,000 BOPD of oil with 70% water cut and 1.5 MMSCMD of gas with a GOR of 1900 v/v.
8Since the field is in hydrodynamic communication with the main Bassein field, the pressure in the field is fast declining. It is in this light that that early monetization of oil reserves was planned to improve the overall oil recovery from the field and a plan for additional development of Vasai East field was chalked out.

Additional development of ONGC's Vasai East project-II: Details of the project

Dec 16: As per the additional development plan of the Vasai East field, ONGC will install two new unmanned platforms -- dubbed VSEB and VSEC -- in the field and carry out topside modifications at the existing BPA process complex and the BCPA-2 platform.
8The scope of work for the tender will include carrying out surveys (pre-engineering, pre-construction/pre-installation and post-installation), design, engineering, procurement, fabrication, load-out, tie-down, sea fastening tow-out/sail-out, transportation, installation, hook-up, testing, pre-commissioning and commissioning (wherever applicable) of the entire facilities.
8In addition to this, a total of five segments of submarine pipelines will also be laid in the field:along with an 18-inch line from VSEB to BPA and from VSEC to BPA, an 8-inch line from BCPA2 to VSEC and VSEB to VSEC and a 6-inch sub-sea lateral to VSEC.
8Finally, oil from the field will be evacuated to Uran through a 12-inch line from the Booster Compressor Platform (BCPA) to the Mumbai-Uran Trunk (MUT) oil pipeline, while gas will be evacuated to the Hazira line after processing at the BPA process complex.




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