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Government says no to Shell, ONGC partnership for Bombay High oilfield

India's Oil Ministry has rejected a proposal by Royal Dutch Shell to partner the Oil and Natural Gas Corp in redeveloping the Bombay High oilfield, a government official said on Friday.

"In March, Shell offered to provide carbonate reservoir expertise for Bombay High in return for partnership with ONGC for incremental oil recovery but their request was turned down," said the ministry official, who did not want to be identified.

Bombay High has India's largest fields. It accounted for 16.75 million tonnes of the 24.695 million of crude state-run ONGC produced in 1999/2000 (April-March).

The ministry official said the proposal was put forward during a meeting of a Shell delegation with Oil Minister Ram Naik. "They have not submitted a written proposal."

The official said Marathon Oil made similar requests for partnering ONGC in Bombay High since 1997 but ONGC and the ministry are opposed to including another firm in Bombay High.

Officials of Shell India Production and Development were not available for comment.

The ministry official said Shell had also offered to bear part of the incremental costs for an equal share of incremental crude oil produced.

India produced 32.005 million tonnes of crude (650,000 barrels per day) in 1999/2000.

ONGC has started work on an improved oil recovery plan for Bombay High fields which is expected to yield an additional 75 million tonnes of crude.

The field, in production since May 1976, is in the matured stage of production and requires a recovery plan to step up output.

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