Page 142 - CW E-Magazine (13-5-2025)

Hydrocarbons

CLOSURE FORMALITIES

ONGC, joint venture partners complete India’s fi rst

offshore facilities decommissioning project

ONGC said the Panna-Mukta and plugging and abandonment of 38 wells ties in offshore and onshore energy in-
Tapti (PMT) joint venture partners, - all executed in line with the approved frastructure. “The Tapti decommission-
Shell (through BGEPIL), Reliance decommissioning plan, it added. ing project also played a pioneering
Industries Ltd. (RIL) and ONGC, have role in shaping India’s regulatory and
successfully completed India’s fi rst “Production from the Tapti fi elds operational framework for offshore de-
offshore facilities decommissioning ceased in March 2016, and this project commissioning. Developed collabora-
project. demonstrates a high level of planning, tively with key stakeholders – including
coordination, and compliance with regu- the Ministry of Petroleum and Natural
The PMT JV, operator of the Tapti latory frameworks while upholding the Gas (MoPNG), Directorate General of
fi elds under a production sharing con- highest safety and environmental stan- Hydrocarbons (DGH) and Oil Industry
tract with the government, comprises of dards,” ONGC said. Safety Directorate (OISD), the project
ONGC with a 40 percent participating sets a benchmark for future offshore
interest, and RIL and BG Exploration The PMT JV awarded major con- energy transitions, rooted in global best
& Production India (BGEPIL-Shell) tracts to Indian companies, Larsen and practices and adapted for Indian condi-
with 30 percent each, the exploration & Toubro (L&T) for offshore execution tions,” ONGC informed.
production (E&P) company said. and Chowgule Shipyard (CLSPL) for
onshore dismantling. Offshore opera- Globally, offshore decommission-
The milestone project involved tions have now been completed safely, ing is a complex endeavour, often in-
removal of fi ve wellhead platforms, and dismantling is underway at CL- volving evolving regulations, deve-
associated infi eld pipelines, load-in at the SPL’s facilities in Ratnagiri, further loping contractor ecosystems, and fl uctu-
onshore dismantling yard and the safe strengthening India’s domestic capabili- ating market dynamics.
PROPOSED RULE

Compensation for oil companies if any changes

in law shave off $5-mn in earnings a year

The government plans to compensate wise reduces the economic benefi t accru- Oilfi elds (Regulation and Develop-
oil and gas explorers in new contracts if ing to the licensee or lessee...such affec- ment) Act.
a future change in the law reduces their ted licensee or lessee shall be entitled to
economic benefi ts by more than $5-mn be placed in the same fi nancial condition If a State Government changes the
per year by adjusting its royalties, fees or had there been no such change in law,” law affecting an explorer’s return, it will
revenue share from an oilfi eld. the Directorate General of Hydrocarbons have to increase or decrease its levies to
(DGH) said in its proposed petroleum deal with the explorer, as per the pro-
The proposed rule is expected to pro- and natural gas rules for the upstream posed rule. But if a law passed by the
tect explorers from government action sector. Parliament affects return, the Centre
such as windfall or retrospective tax and will adjust its levies or revenue share to
allow for stable economic returns as the Similarly, if a new law reduces costs stabilise the explorer’s economic benefi t.
Centre seeks to boost investments in or increases returns for the explorer, the
exploration. government shall increase its levies or Oil and gas explorers, who already
revenue or profi t share to ensure explorers face great geological and market risks,
“In the event of a change in law sub- do not make extra economic gains, it said. have been demanding policy stability
sequent to the grant of license or lease to prevent any government move that
which results in an increase in costs, or The new rules have been proposed could end up curbing their returns on
reduction in net after-tax return, or other- following the recent amendment of the investment.

142 Chemical Weekly May 13, 2025

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