Page 4 - AsianOil Week 18 2021

AsianOil SOUTH ASIA AsianOil

Indian TPPs seek easier

access to ONGC’s gas

PROJECTS & AN industry body representing India’s
COMPANIES power generators is lobbying the govern-
ment to make it easier for certain natural
gas-fired thermal power plants (TPPs) to
bid for supplies of the fuel from a new deep-
water field.
The Association of Power Producers (APP)
reportedly urged the government this week to
relax biddings rules governing gas-constrained
TPPs looking to offtake from state-run Oil and
Natural Gas Corp.’s (ONGC) KG-DWN-98/2
(KG-D5) gas field, which lies in the Krishna-Go- Around 24,900 MW of gas-fired generation only
davari (KG) Basin. managed to run at 23.4% capacity in financial year
The industry body has asked that “stranded” 2020-2021 owing to a lack of feedstock. Around
TPPs be allowed to pay less than the required 12,000 MW of that has been classified as stressed
INR20mn ($271,000) security deposit, bid for assets, with 5,600 GW receiving no gas at all.
one-year contracts rather than ONGC’s set “Under such circumstances, the turnover
three-to-five-year terms as well as relax the auc- and net worth of parent/ultimate parent/
tion’s net-worth criteria, local daily Financial holding company, as well as affiliates and
Express reported on May 3. associate companies, should be allowed for
The APP argues that the bidding rules need to meeting the criteria,” the paper quoted the
be relaxed in order to give stranded TPPs a more APP’s letter to the Ministry of Petroleum
realistic chance of securing new gas supplies, the and Natural Gas as saying.
lack of which compromised their financial per- ONGC’s KG-D5 field started up in March
formance in the first place. 2020, with production projected to peak at 15
he body noted that putting up a security mcm per day by financial year 2023-24. Finan-
deposit that is equivalent to two weeks’ worth cial services provider HDFC Securities fore-
of gas supply – INR230mn ($3.1mn) in the cast last month that the state-run producer’s
case of buyers needing 1.5mn cubic metres overall production would climb from 62 mcm
per day of gas – was beyond the ability of most per day in 2020-2021 to 75 mcm per day in
stranded assets. 2023-2024.™

SOUTHEAST ASIA

SKK Migas sets Rokan well target

PROJECTS & INDONESIAN upstream regulator SKK Migas The government has also set a 2030 natu-
COMPANIES has said drilling nearly 200 wells at the country’s ral gas production of target of 12bn cubic feet
second-largest oilfield this year will be crucial to (339.84mn cubic metres) per day. Both oil and
achieving the government’s long-term produc- gas production are trailing national production
tion targets. targets, however, with crude output declining at
State-owned Pertamina is preparing to a notable pace.
take over the Rokan block in August from SKK Migas revealed last week that
US super-major Chevron, and the regulator first-quarter oil production amounted to
has said it wants both companies to have 676,200 barrels per day, short of the regula-
drilled a combined 192 wells by the end of tor’s 2021 target of 705,000 bpd. SKK Migas
the year. chairman Dwi Soetjipto told a press confer-
“In the transfer of management of the Rokan ence that the shortfall was the result of both a
block, SKK Migas will continue to maximise the higher water ratio in some oil wells as well as
potential of this block to supply national oil and upstream investment delays.
gas production needs to support 1mn barrels First-quarter gas production amounted
[per day] of oil production in 2030,” SKK Migas’ 5.54bn cubic feet (156.96mn cubic metres) per
acting deputy for procurement control, Rudi Sat- day, marginally missing the government’s target
wiko, said on April 30. of 5.64 bcf (159.72 mcm) per day.

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