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Discovered small field: Promoter bit off more than he could chew
May 11:
The Discovered Small Fields Round had a couple of over enthusiastic bidders who jumped in without conducting adequate due diligence.
8A subsequent real life analysis showed that they overreached while bidding for these blocks. Reserves were found to be much lower than what they had anticipated.
8In a couple of blocks, bidders have sought a revision of the contract norms from the government in the face of lower than estimated reserves.
8The government for now is unwilling to play ball.
The following are the details:
8Project Name: Offshore Field Development
8Project Cost: Rs 450 crore.
8Project Description: The operator's RFQs for the development of the block has been delayed as the ministry is still to react to the company's plea for further concessions now that an oil field analysis revealed that the block has fewer potential reserves than was anticipated earlier. The operator claims talks are going on with the government for a viable solution. The project involves development drilling of oil wells, installation of an offshore platform and laying of a subsea pipeline. A consultant was hired for oil field analysis.
8Project Event: For now at least, RFQs for hiring an EPCM contractor is expected by August 2018 instead of June 2018.
8Expenditure Approval: Q1/2018.
8RFQ Date: Aug/2018.
8Release Date: Sep/2018.
8Date: Nov/2019
8Completion Date: Nov/2022
Click here for more details for key contacts and other details
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8A subsequent real life analysis showed that they overreached while bidding for these blocks. Reserves were found to be much lower than what they had anticipated.
8In a couple of blocks, bidders have sought a revision of the contract norms from the government in the face of lower than estimated reserves.
8The government for now is unwilling to play ball.
The following are the details:
8Project Name: Offshore Field Development
8Project Cost: Rs 450 crore.
8Project Description: The operator's RFQs for the development of the block has been delayed as the ministry is still to react to the company's plea for further concessions now that an oil field analysis revealed that the block has fewer potential reserves than was anticipated earlier. The operator claims talks are going on with the government for a viable solution. The project involves development drilling of oil wells, installation of an offshore platform and laying of a subsea pipeline. A consultant was hired for oil field analysis.
8Project Event: For now at least, RFQs for hiring an EPCM contractor is expected by August 2018 instead of June 2018.
8Expenditure Approval: Q1/2018.
8RFQ Date: Aug/2018.
8Release Date: Sep/2018.
8Date: Nov/2019
8Completion Date: Nov/2022
Click here for more details for key contacts and other details
