Schlumberger, Halliburton lose ONGC deals

NEW DELHI, July 5, 2017 – India’s ONGC cancelled two production enhancement contracts with Schlumberger and Halliburton after the Ministry of Petroleum and Natural Gas objected that they were awarded without a proper bidding process, local media reported on Wednesday.

The two statements of understanding had been signed in the presence of Minister of Petroleum and Natural Gas Dharmendra Pradhan on December 7, 2016, but the ministry subsequently decided that offering the contracts on the basis of nomination was unacceptable and the ONGC board concurred, The Hindu BusinessLine reported.

ONGC has now initiated a tender for the 15-year agreements, which target the declining fields of Geleki and Kalol. Oilfield services providers would be expected to invest in the fields in exchange for payment for every barrel of oil or Btu produced over an established baseline, the report added.

The news came days after ONGC Videsh, the Indian NOC’s overseas arm, announced on Monday that it had agreed to acquire a 30% participating interest in the Namibia Petroleum Exploration Licence 0037 from Tullow Oil for an undisclosed amount.

“The completion of the present transaction would mark ONGC Videsh’s entry in Namibian offshore and is consistent with its strategic objective of adding high impact exploration and production assets to its existing E&P portfolio,” the company said in a statement, noting that Tullow Oil would remain the operator of the licence.

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