Shell-Reliance-ONGC JV completes India's first offshore facilities decommissioning project

A joint venture of Shell, Reliance Industries Ltd and ONGC has successfully completed India's first offshore facilities decommissioning project with the safe removal of installations on the mid and south Tapti gas field in the Arabian Sea, the firms said on Monday.

Once a field stops producing oil and gas, the facilities that were erected to bring out hydrocarbons from below ground or under seabed, have to be safely removed - a process called decommissioning.

The Tapti field, lying 160 km north-west of Mumbai, stopped producing in 2016. Certain facilities at the mid and south Tapti fields, known as the Tapti Part A Facilities were handed over to state-owned ONGC while the remaining facilities, which included 38 wells, 5 wellhead platforms and four pipelines, known as Tapti Part B Facilities were abandoned by the joint venture.

In 2017, the joint venture started preparing to decommission the Tapti field, where Shell owned 30% interest, Oil and Natural Gas Corporation (ONGC) held 40% and the remaining being with Reliance (RIL).

"In a landmark achievement for India's energy sector, the Panna-Mukta and Tapti (PMT) joint venture partners - Shell (through BGEPIL), RIL, and ONGC have successfully completed the country's first offshore facilities decommissioning project with the safe removal of mid and south Tapti field facilities," the firms said in a statement.

The companies said, "The project involved removal of five wellhead platforms, associated infield pipelines, load-in at the onshore dismantling yard and the safe plugging and abandonment of 38 wells - all executed in line with the approved decommissioning plan".

Production from the Tapti fields ceased in March 2016, and "this project demonstrates a high level of planning, coordination, and compliance with regulatory frameworks while upholding the highest safety and environmental standards", the statement said.

The PMT JV awarded major contracts to Indian companies Larsen and Toubro (L&T) for offshore execution and Chowgule Shipyard (CLSPL) for onshore dismantling.

"Offshore operations have now been completed safely, and dismantling is underway at CLSPL's facilities in Ratnagiri, further strengthening India's domestic capabilities in offshore and onshore energy infrastructure," the statement said.

The Tapti decommissioning project also played a pioneering role in shaping India’s regulatory and operational framework for offshore decommissioning.

Developed collaboratively with key stakeholders - including the Union Ministry of Petroleum and Natural Gas (MoPNG), Directorate General of Hydrocarbons (DGH), and Oil Industry Safety Directorate (OISD), the project sets a benchmark for future offshore energy transitions, rooted in global best practices and adapted for Indian conditions.

Nipun Pradhan, Managing Director, BGEPIL and GM Shell Upstream India, said, "The safe and successful completion of the Tapti offshore project is a landmark moment for India’s offshore energy sector. This project sets a new benchmark for responsible decommissioning, made possible by global expertise, strong collaboration, and an unwavering commitment to safety and sustainability. Shell is proud to be part of this historic journey alongside our partners Reliance, ONGC, and the Government of India".

The safe and responsible offshore decommissioning by the PMT JV marks a significant step forward for India's energy sector, said Sanjay Barman Roy, President, E&P, RIL.

"From the outset, the JV partners worked tirelessly to strengthen local supply chains and enhance the technical and safety capabilities of Indian contractors, especially for offshore dismantling activities. This project has successfully delivered on the Indian government's ambition of 'Make and Break in India'," he said.

Pankaj Kumar, Director (Production), ONGC, remarked, "This first-of-its-kind large-scale offshore decommissioning underscores ONGC's commitment to responsible energy practices. The project's complexity, especially its proximity to ONGC's live assets demanded strategic planning, precise execution, and utmost focus on safety. It marks a defining moment in India’s energy landscape and sets a strong foundation for the next chapter in offshore infrastructure transformation".

Globally, offshore decommissioning is a complex endeavour, often involving evolving regulations, developing contractor ecosystems, and fluctuating market dynamics.

The successful Tapti decommissioning project demonstrates what can be achieved through multi-stakeholder collaboration and serves as a model for environmental responsibility, safety, and efficiency in India's growing energy transition journey, the statement said.

The Panna-Mukta field (primarily an oilfield) and the mid and south Tapti field (a gas field), which are offshore shallow water fields located in the offshore Mumbai basin, were initially discovered and operated by ONGC. In February 1994, these were awarded to a consortium of Enron Oil & Gas India Ltd and RIL for development under a production-sharing arrangement.

ONGC, Enron and RIL formed a joint venture (PMT JV) with participating interests of 40, 40, and 30%, respectively. In February 2002, Enron's 30% stake in the JV was acquired by British Gas Exploration and Production India Ltd (BGEPIL).

In 2016, Royal Dutch Shell acquired BG Group globally. BGEPIL became a part of Shell India.

The Tapti fields (measuring 1,471 square kilometres) are 35 km from Saurashtra Coast, 75 km from Hazira and 160 km northwest of Mumbai. The Tapti block contains two fields - mid-Tapti and south Tapti. The Tapti fields lie in approximately 21 metres of water depth.

The Tapti fields went into a phase of decline after 2008 and cessation of production was finally declared in March 2016.