ONGC to Permit GAIL for Marketing Natural Gas from C-Series Field

ONGC, the state-run Oil and Natural Gas Corporation, has decided to permit Gas Authority of India Ltd (GAIL) to market natural gas from its C-series field off the western coast, after earlier considering maintaining control over the investment of over INR 3,000 crore. According to a senior official from ONGC, the decision was made to avoid wasting time. The C-series field was developed by ONGC at an investment of INR 3,195 crore, 60 km west of Daman in the Tapti Daman block of the Mumbai offshore basin. The government had granted the field to ONGC prior to the New Exploration Licensing Policy regime, allowing for freedom on pricing and marketing.

Key Takeaways:

ONGC will permit GAIL to market natural gas from its C-series field, marking a shift in strategy to avoid idle investment.
The C-series field was developed by ONGC at an investment of INR 3,195 crore, 60 km west of Daman in the Tapti Daman block of the Mumbai offshore basin.
The government allowed producers to charge marketing margin on gas supplied directly to consumers, prompting ONGC's decision to seek partnerships for gas marketing.
GAIL had also sought the rights to market the C-series gas, which was left to the discretion of ONGC.
The New Exploration Licensing Policy regime grants contractors freedom on pricing and marketing, reflecting a shift in government policy towards market-based gas pricing.
ONGC's decision to permit GAIL for gas marketing marks an adjustment to its business strategy, acknowledging the value of partnerships in gas distribution.

Statistics:

INR 3,195 crore: Investment made by ONGC in developing the C-series field.
60 km: Distance of the C-series field from Daman.
Three million metric standard cubic meters a day: Gas output from the C-series field.
INR 3,000 crore: Estimated idle investment ONGC considered before deciding to permit GAIL for gas marketing.

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