ONGC inks IT pact with Schlumberger

The state-owned Oil and Natural Gas Corporation (ONGC) today signed a memorandum of understanding (MoU) with global oil service provider Schlumberger for sourcing technology to increase production from its depleting and ageing fields.

The technical alliance, according to ONGC chairman Subir Raha, will mainly be for oil and gas field study and techniques to increase production.

It is aimed at increasing the company's annual crude oil production of 26 million tonnes and arrest the natural decline in production due to the ageing field.

Raha said ONGC and Schlumberger will jointly foot the expense of studying the possibility of increasing production, which is for 15 fields initially.

If additional output is substantial, ONGC might give the field development contract to the US firm on a service fee-basis or share the spoils of the increased production, Raha told a news conference.

The corporation is also aiming at similar tie-ups with US major Hallibarton and Transocean for drilling technology.

"Our tie-ups are risk mitigation exercises and would get us the best of technology and services for boosting output," Raha said.

The MoU envisages cooperation in improving recovery and reservoir management, marginal field development, exploration in frontier basins, deep sea exploration and exploitation, IT and data management solutions, logistics management, integrated project management and engineering services.

The activities, under the agreement, range from data collection, processing and interpretation of geological data, consultancy to project alliance, innovation and R&D, logistics and other associated communication and service protocols.