Shell eyes ONGC?s old wells
Shell Global Solutions is eyeing a tie-up with ONGC Ltd to provide technology for improving production of the latter?s ageing oil wells, reports Suman Layak.india Updated: Feb 20, 2007 01:10 IST
Shell Global Solutions, the services arm of global oil major Shell, through its Indian arm Shell India Private Ltd, is eyeing a tie-up with ONGC Ltd to provide technology for improving production of the latter’s ageing oil wells.
The company wants to provide its technology for extracting oil from old oil wells of ONGC in return for around 50 per cent share of oil. The matter has been pending with ONGC for sometime and no decision is likely till the company has a new chairman firmly in saddle.
Shell’s Bart Van de Ven told Hindustan Times on Monday: “We would rather enter into an agreement for sharing production than just providing technology. There are a lot of consultants who can provide technology. We would rather take a share in oil.”
ONGC right now has around 40 oil wells under the twin programmes of Improved Oil Recovery (IOR) and Enhanced Oil Recover (EOR). Of these, the company itself has started working on 16 wells to improve production.
ONGC sources said the management under former chairman Subir Raha was not too keen to part with oil in return for technology and was prepared to pay a fee for the technology. However, the situation may change if a new chairman comes in.
Shell on Monday announced that it has signed a contract with Centre for High Technology to improve the efficiency of four major Indian refineries, including Indian Oil’s Mathura Refinery, Chennai Petroleum’s Manali refinery, Hindustan Petroleum’s Vizag refinery and Bharat Petroleum’s Kochi Refinery.
These refineries currently account for 25 per cent of Indian consumption of petroleum products like petrol, aviation fuel and diesel.
Wind power talks on
Shell is also in talks with a number of Indian companies for setting up wind power plants in the country. The company is in the verge of starting off its first offshore wind power generating plant off the coast of The Netherlands.
Bart Van De Ven said: "We are talking to a lot of Indian companies. These are early days but we are looking for people with experience to partner in India."
First Published: Feb 20, 2007 01:10 IST