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Lloyds List: Shell to step in and help ONGC boost Kalol production

Published: Sep 05, 2006

SHELL is on the verge of helping India’s Oil and Natural Gas Corp increase production from the Kalol field in the Western onshore area, writes Shirish Nadkarni in Mumbai.

The average crude output at Kalol, which is ONGC’s highest producing field in the Ahmedabad asset, is 1,430 tonnes per day. The field also produces associated gas.

Talks between the two companies are understood to be at a nascent stage as details are yet to be firmed up on how Shell would participate in the project.

Shell has already given some proposals for further development of the Kalol field.

Indications are that the Anglo-Dutch company wants to make some investment in the project and not just come in as a service contractor.

‘The concept of how this will be worked out is being discussed,’ a company executive said. ONGC is currently implementing an improved oil recovery scheme to augment production in this field.

The aggregate crude production (along with condensate) for all the fields in the Ahmedabad asset is around 1.7m tonnes per year. These discussions are the first upstream element of a memorandum of understanding inked between the two companies in January 2006 for wide ranging co-operation in the hydrocarbon chain.

 

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