RIL, ONGC shares in focus as JV completes India’s first offshore decommissioning

Shares of RIL and ONGC are in news today. This comes after the Panna-Mukta and Tapti (PMT) joint venture, comprising Shell (through BGEPIL), Reliance Industries (RIL), and Oil and Natural Gas Corporation (ONGC), has successfully completed the country's first offshore facilities decommissioning project. The venture, operating under a production sharing contract with the Indian government, involved the safe removal of mid and south Tapti field facilities. ONGC holds a 40% interest in the Tapti fields, while RIL and BG Exploration & Production India Ltd (BGEPIL-Shell) each hold 30%.

The milestone project encompassed the removal of five wellhead platforms, associated infield pipelines, and the safe plugging and abandonment of 38 wells, all executed according to the approved decommissioning plan. Production from the Tapti fields ceased in March 2016. This project exemplifies meticulous planning and compliance with regulatory frameworks, reflecting high safety and environmental standards. Contracts were awarded to Indian companies, including Larsen & Toubro for offshore execution and Chowgule Shipyard for onshore dismantling, enhancing India's domestic capabilities in energy infrastructure.

Notably, the Tapti decommissioning project played a crucial role in shaping India's regulatory and operational framework for offshore decommissioning. The project was developed collaboratively with key stakeholders, including the Union Ministry of Petroleum and Natural Gas, Directorate General of Hydrocarbons, and Oil Industry Safety Directorate. This effort establishes a benchmark for future offshore energy transitions, rooted in global best practices and adapted for Indian conditions. The dismantling operations are currently underway at Chowgule Shipyard's facilities in Ratnagiri, aligning with the government’s 'Make in India' vision and furthering the country's capabilities in energy infrastructure.