Setback in ONGC's KG-DWN-98/2 Block-III: Specious argument
If collaborative models are followed in the Gulf of Mexico, could the same concept been applied in the deepwater blocks in the KG basin? 8Operating costs of a deepwater project consist of gathering, processing, transportation, and water disposal and fixed well or lease operating costs. 8In this context, on hindsight, no explanation would be enough to justify building a separate infrastructure for ONGC's KG-DWN-98/2 block when massive capacity redundancy was available in the backbone built by RIL's in its D-6 block. 8An argument was brought in that the geological characteristics and well fluid parameters in the two blocks were different and therefore common infrastructure could not be used. 8But this is a specious argument and should be subjected to rigorous scrutiny.