State-run ONGC plans to hike output from its onshore mature fields through production enhancement contracts (PEC) with oil and gas companies who have technical expertise, financial capability and resources to increase production by improving the recovery from such fields. The company has already floated a tender, seeking expressions of interest (EoI) from global oil and gas companies for the purpose. In its tender document, ONGC said that the duration of the PEC will be 15 years or more and companies will be required to commit investment in capital expenditure and operational expenditure to increase production from the existing production by introduction of new technologies, among others.
