State-run Oil & Natural Gas Corporation Ltd (ONGC) has urged the Centre to expedite and convey a final decision on producer price of gas, stressing on the point that the tariff commission (TC) has recognised that the value of gas is more than the current administered pricing mechanism (APM) prices.
ONGC has argued that the producer price can be fixed at somewhat higher level than the price recommended by the TC. The differential can be used by ONGC for exploration and production (E&P) activities.
Earlier, ONGC had conveyed its acceptance of the recommendation of TC. Considering the time delay, though as brought out in the letter, ONGC is not in complete agreement with the recommendations of the TC.
With regard to non-APM gas, ONGC has requested that the oil company?s submission on quantum of non-APM gas, out of the total gas sold, be considered and approved.
ONGC wants that the gas over and above the APM gas, which includes additional and new gas, be allowed to be sold at market-determined prices.
This is also in view of the fact that the TC had recommended a price of Rs 3,600/million cubic metre (MCM) only for APM gas produced by ONGC from nominated blocks as specified in the TC?s letter of May 23.
As far as ONGC is concerned, during the last ten years (1997-2007), 49 wells have been drilled in deepwater offshore areas in the east and west coast under deepwater drilling programme. Out of the 49 wells, one is situated in water-depth less than 200 metres three are in water-depth ranging from 200-400 metres and 45 are in water-depth of more than 400 metres.