Consortium partners of Panna-Mukta to invest $ 510 mm 2009-2010
Consortium partners British Gas, ONGC and Reliance Industries Ltd (RIL) of the Panna-Mukta-Tapti (PMT) fields propose
to invest $ 510 mm in the coming fiscal (2009-2010) in the asset.
Company sources told that at a recent asset management committee, which also has a Government nominee, the budget for
2009-2010 was approved. The consortium would spend $ 400 mm for the Panna-Mukta fields and $ 90 for Tapti area.
Another $ 20 mm is likely to be added for Tapti field for which the approval will be taken, the official said. The
consortium produces 43,000 bpd of oil from Panna-Mukta fields and 16.25 mm cmpd of gas from the Tapti area.
Drop in output
Sources agree that there has been a drop in production from the asset. The gas production has come down from 17.5 mm
cmpd.
"We are taking measures to enhance production from the area by drilling more wells," sources added. British Gas (30 %
stake), ONGC (40 %) and RIL (30 %) jointly operate the asset.
On going ahead with the additional work programme for 2008-09 of drilling four wells without the Directorate General
of Hydrocarbons (DGH) approval, sources said, "We are trying to resolve issue. Two management committee meetings have
already been convened, where the issue was deliberated."
"The intent was not to avoid any mandatory approvals. The company had already completed the work programme approved
for the current fiscal of drilling 14 wells. And since the hired rig which cost $ 170,000 mm a day was lying idle, it
was proposed that we would drill nine more appraisal wells. Of this, four wells were planned to be drilled by the end
of this fiscal and five in the next fiscal," sources said. "Rig availability is an issue, and since it was available
with the consortium, we decided to use it," they added.
Without the approval of DGH, the consortium has ended up paying from its own pocket. The contractors get cost
recovery for the wells they drill, but since the four additional wells did not have the DGH approval the consortium
has ended up paying from their share of revenue, after setting aside profit share of the Government.
The consortium hopes to get the DGH nod shortly, sources said.
