ONGC Faces Third Strike: Deen Dayal Gas Field Fails to Attract Partners

State-owned ONGC's third effort to find partners for the Deen Dayal gas field in the KG basin has failed, with no bids received. The venture, acquired for USD 1.2 billion from GSPC, continues to face significant challenges, including poor productivity from development wells and technical difficulties.

State-owned Oil and Natural Gas Corporation (ONGC) is facing another setback in its attempts to secure partners for the Deen Dayal field in the Krishna-Godavari basin. This third failed effort to attract bids reflects ongoing difficulties in harnessing the field's potential.

The company sought global oil and gas firms with the technical and financial strength to team up and devise a strategy for the field, yet, as with past attempts, interest was lacking. ONGC had acquired an 80% stake in the field from Gujarat State Petroleum Corporation under high expectations, but the field has produced meager quantities since 2017.

Characterized by high pressure and high temperature, the field's reservoirs present significant challenges. Despite ONGC's investment, including acquiring the field for USD 1.2 billion, technical complications stalled productivity. The field was initially projected to hold massive reserves; however, output remains minimal, underlining the complexities facing India's energy sector.

(With inputs from agencies.)