New Delhi: Oil and Natural Gas Corporation (ONGC), BP and Reliance Industries Limited (RIL) are exploring a proposal to develop a common offshore infrastructure facility worth around $1 billion in the Mahanadi basin, according to a report by The Economic Times.
The proposed facility is intended to support the production and evacuation of natural gas and condensate from deepwater and ultra-deepwater fields. The initiative, taken up by the Ministry of Petroleum and Natural Gas, is at an early stage, with technical consultants expected to be appointed shortly, the report said, citing industry executives familiar with the discussions.
The project is expected to allow multiple operators to use shared offshore facilities instead of setting up separate infrastructure, reducing capital expenditure and improving the economics of smaller hydrocarbon discoveries.
Common Facility to Support Offshore Gas Production
Deepwater and ultra-deepwater projects require significant investment in production, processing and transportation infrastructure. The high cost of developing individual facilities can make smaller discoveries commercially unviable.
The proposed common infrastructure would enable operators to pool production and share facilities for handling and transporting natural gas and condensate. This could help bring smaller and marginal discoveries into production that may otherwise remain undeveloped.
ONGC, BP, RIL and the Ministry of Petroleum and Natural Gas did not respond to queries from The Economic Times, the report said.
FPSO and Fixed Platform Options Under Consideration
The technical configuration of the proposed facility is yet to be finalised. The options being examined include a Floating Production, Storage and Offloading (FPSO) vessel or a fixed offshore platform.
An FPSO-based facility could offer greater flexibility, as much of the infrastructure can be assembled before deployment at the offshore location. A fixed platform may require a longer construction and installation period.
Industry executives cited in the report indicated that a project of this scale could take at least three to four years to develop.
North Sea Model May Guide Infrastructure Sharing
The proposal draws on infrastructure-sharing arrangements used in established offshore oil and gas regions, including the North Sea. Under this model, operators jointly develop production and transportation facilities, which can also be accessed by other producers against usage charges.
The arrangement is expected to reduce duplication of investment, improve utilisation of offshore infrastructure and make the development of smaller hydrocarbon reserves more economical.
If implemented, the proposed facility could provide a common development framework for ONGC, BP and Reliance in the Mahanadi basin, supporting the production and evacuation of offshore gas and condensate.
