ONGC, the Indian Multinational Oil & Gas Company takes over Tapti assets from BG and Reliance

India: Oil & Natural Gas Corporation Limited (ONGC), have acquired a part of abandoned assets of Tapti gas field to produce gas from its Daman Fields. The assets were acquired from joint venture companies Reliance Industries Limited (RIL) & British Gas (BG). This move is expected to save companies approximately INR3000-4000 crores which would be utilized to build offshore infrastructure for producing gas from Daman gas field as well as C-26 Cluster projects. 

TechSci Research depicts that this takeover would bring new pace in natural gas production which is beneficial for India thereby increasing the demand for Indian oilfield services. Rising government concerns in petroleum E&P sector would enhance the growth of oilfield services on account of increasing oil & gas exploration and production activities within the country, which aims at reducing country’s dependence on oil imports. Oilfield services help smoothen the drilling process by eliminating the waste produced during drilling and enhances the oil recovery process by providing repair and maintenance of bore wells.

According to recently released TechSci Research report, “India Oilfield Services Market Forecast and Opportunities, 2020”, the market for oilfield services (OFS) in India is forecasted to cross USD7.8 billion in 2020. Government’s decision of auctioning 69 idle oil and gas fields of state-owned ONGC and Oil India to private companies on new revenue sharing model is expected to boost oil and gas E&P over the next five years, which in turn would fuel the growth in the country’s oilfield services market through 2020. With various Public Sector Undertakings (PSUs) planning to invest in E&P activities, the country’s oilfield services market is set to witness growth during 2015–2020.