ONGC relaunches tender to sell gas from KG fields at USD15 per mBtu

ONGC has relaunched a tender to sell gas from its KG fields at the higher price of $15 per million British thermal units (mBtu), as it looks to capi­tali­se on a global surge in energy prices. The firm sought bids for the sale of 0.75 million standard cubic metres per day (mmscmd) of gas for one year from the KG-DWN-98/2 (KG-D5) fields in the Bay of Bengal. The company has asked users to quote a premium that they are willing to pay over and above the reserve gas price of 14 per cent of the Brent crude oil price, plus $1 per mBtu. At the current Brent rates of around $101 per barrel, the reserve price comes to over $15 per mBtu. The KG-D5 block is expected to have a peak production rate of 15.25 mmscmd of natural gas and 80,000 barrels of oil per day.