ONGC seeks buyers for KG Basin gas
NEW DELHI: Oil and Natural Gas Corp is seeking buyers for the first gas from its KG basin fields, which would begin production next month after years of delay. ONGCNSE -0.14 % is auctioning 0.75 million metric standard cubic meters a day (MMSCDM) of gas for three years from its KG-DWN-98/2 fields, bids for which are to be submitted by November 19. ONGC is spending more than $5 billion to bring these fields to production.
It has set a reserve price of $5.61 per million metric British thermal unit (mmBtu) and the minimum bid quantity at 0.05 MMSCMD. Bidders will have to quote the number of days they would need to offtake gas after being awarded—with preference for the bidder with fewer days in case of a price tie. Bidders will make a single bid electronically.
