Deepwater costs continue to plummet-III: Can ONGC ever join hands with RIL?
Jul 21: Modeling exercises have shown that a multi-operator approach, co-developments and partnerships can make a big difference. 8Performance driven commercial collaborations between suppliers and producers is the new norm 8One example of the collaboration model is to build a cross-operator inventory of follow-on activities that provides opportunities for tiebacks to existing deepwater facilities. 8This multi-operator approach could accelerate development activities at a reduced cost, significantly improving rates of return and supporting continued investment. 8Other opportunities for operator collaboration include sharing logistics costs, such as helicopter flights, within a basin. Collaboration initiatives are already under way in the North Sea, where offshore operators announced in 2016 that they were in talks to merge substantial parts of their operations, including procurement, logistics, and finance departments 8Gulf of Mexico has seven upstream operators collaborating to reduce costs 8In India however, the best collaboration can be between ONGC and the RIL-BP regime in the KG Basin 8The economics of scale can be massive. 8Nevertheless, political compulsions of the new government do not allow for such collaborations as of the moment but there is no harm in conducting a broader study on the benefits of multi-operator approach in the KG Basin, it will be a helpful first step. 8If the economics can be established, selling it to all stakeholders can be a subsequent exercise Click on Reports for more