Shell Mulls India Field Exit
Shell India is planning to exit the Panna-Mukta-Tapti (PMT) fields offshore India and will not seek an extension to its production sharing contract (PSC) which expires in December 2019, Financial Express reported May 16.
Out of the three fields, Panna and Mukta are oil fields while Tapti is a gas field. Shell India and Reliance Industries hold 30% each in the fields, while state ONGC holds the remaining 40%. The fields, discovered by ONGC, are located 95 km off the coast of Mumbai and spread over 430 km2.
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Output from the PMT fields has been declining in recent years. According to Reliance, during the first three months of 2018, the fields produced 1.3mn barrels of crude oil, down 10% year on year and 15.1bn ft3 of natural gas, up only 2% compared with the first three months of 2017.
Reliance and Shell also operate gas fields in KG Basin offshore India’s east coast. Last month, they sanctioned the development of the Satellite cluster project in KG D6 block. It is the second of three joint projects that together are expected to produce 1bn ft3/d of new Indian gas production by 2022.