(ET)
Oil and Natural Gas Corp (ONGC), India’s largest vertically integrated oil company, is looking at production enhancement contracts (PECs) and enhanced oil recovery techniques to boost oil and gas output from old and matured fields that are faced with natural decline, its chairman Shashi Shanker said. The company plans to bring in service providers with advanced technology in operation of its oil and gas fields by offering them a PEC where they would get a pre-determined fee forincremental production over a baseline.
Field operators would be selected through a competitive bidding process where those offering higher growth in output would be chosen, he said. Under the PEC, the service provider will also be responsible for maintaining Base Production Profile for which fees will be paid.
