Shirish Nadkarni
OGJ Correspondent
MUMBAI, Feb. 18 -- India's Oil & Natural Gas Corp. (ONGC) and Royal Dutch Shell PLC recently revised their joint participation memorandum of understanding for projects to be auctioned in the forthcoming seventh round of India's New Exploration Licensing Policy VII (NELP VII).
The original MOU was aimed at cooperation in field optimization using Shell's proprietary enhanced recovery technology and in other areas such as LNG importation, development of coal bed methane, underground and surface coal gasification projects, refinery upgrades, and trading and development of supply chains.
The exploration and production giants have agreed to evaluate jointly setting up surface coal gasification facilities to create synthesis gas for power generation or other uses.
They also plan to jointly explore opportunities for technology induction in field optimization and integrated brownfield development in mutually agreed assets. Shell will provide technical know-how, including operational experience.
Depending on the outcome of a planned prefeasibility study, Shell may commission a detailed feasibility study to evaluate the possibility of taking equity in such projects under a separate licensing agreement. The study would be commissioned subject to Shell's assessment of strategic and investment synergies with its businesses.
The energy majors also agreed to study the feasibility of gasifying petcoke produced by ONGC subsidiary Mangalore Refinery & Petrochemicals Ltd. (MRPL).
ONGC and Shell would weigh joint business opportunities in such areas as marine fuels and lubricants at select ports and will evaluate the feasibility of Shell's lifting or buying products from MRPL on a "free on board" basis at New Mangalore Port Trust for resale in international markets.
