ONGC, Shell to jointly bid for projects under Nelp-VII round

Written by Sanjay Jog | Mumbai, Jan 28 | Updated: Jan 29 2008, 04:25am hrs
With an intent to jointly participate in projects under Nelp-VII, Oil & Natural Gas Corporation (ONGC) and Shell have recently revised their MoU.

The original MoU was aimed at cooperation in the area of enhanced recovery through field optimisation using Shells proprietary technology, and other mutually identified areas of cooperation like LNG import, development of coal bed methane, underground coal gasification and surface coal gasification projects, refinery upgrade, trading and development of supply chains.

The exploration & production giants plan to jointly explore opportunities for technology induction in field optimisation and integrated brownfield development in mutually agreed assets. Under the arrangement, Shell will provide its technical know-how, including operational experience.

The two state-run companies have agreed to evaluate the possibility to jointly set up surface coal gasification facilities for synthesis gas, to be for power generation, or any other use. Depending on the outcome of the pre-feasibility study, commissioned by ONGC or Shell, to establish techno-commercial viability of such projects. Shell may, subject to its assessment of strategic and investment synergies with its businesses, commission a detailed feasibility study and evaluate the possibility of taking equity in addition to its role as a technology licensor for such projects under a separate licensing agreement. The two have also agreed to study the feasibility of gasification of petcoke produced by Mangalore Refiner & Petrochemicals Ltd (MRPL).

Both companies would jointly explore new areas of co-operation. They will join hand together for bidding blocks under Nelp-VII, ONGC sources told FE.

ONGC and Shell would weigh joint business opportunities in the areas of marine fuels (for supply as bunkering fuels) and lubricants at select ports.

The feasibility of Shell lifting or buying products from MRPL on a FOB at New Mangalore Port Trust basis, for onward selling in the international markets, will also be evaluated.