Shell, Reliance, and ONGC cheer end of India’s first oil & gas offshore decom project

A joint venture (JV), consisting of Shell (through BGEPIL), Reliance Industries Limited (RIL), and Oil and Natural Gas Corporation (ONGC), has wrapped up work on what is said to be India’s first offshore facilities decommissioning project.

The Panna-Mukta and Tapti (PMT) joint venture partners – Shell (30%), Reliance (30%), and ONGC (40%, operator) – have completed the Asian country’s first offshore facilities decommissioning project with the safe removal of mid and south Tapti field facilities. This project is described as “a landmark achievement” for India’s energy sector.

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), this project is said to have demonstrated a high level of planning, coordination, and compliance with regulatory frameworks while upholding the highest safety and environmental standards.

Commenting on this achievement, Nipun Pradhan, Managing Director of BGEPIL and GM Shell Upstream India, highlighted: “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.”

Furthermore, the decommissioning project entailed the removal of five wellhead platforms, associated infield pipelines, load-in at the onshore dismantling yard, and the plugging and abandonment of 38 wells executed in line with the approved decommissioning plan, after production from the Tapti fields ceased in March 2016.

Sanjay Barman Roy, President of E&P at Reliance Industries, underlined: “The safe and responsible offshore decommissioning by the PMT JV marks a significant step forward for India’s energy sector.

“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.’”

Given the government of India’s ‘Make in India’ vision, the PMT JV partners handed out major contracts to Indian companies: Larsen and Toubro (L&T) for offshore execution and Chowgule Shipyard (CLSPL) for onshore dismantling.

While offshore operations have been completed, dismantling is underway at CLSPL’s facilities in Ratnagiri. The Tapti decommissioning project is perceived to have played a pioneering role in shaping India’s regulatory and operational framework for offshore decommissioning.

Even though offshore decommissioning is believed to be a complex endeavor, often involving evolving regulations, developing contractor ecosystems, and fluctuating market dynamics, the JV claims that the Tapti decommissioning project demonstrates what can be achieved through multi-stakeholder collaboration.

Pankaj Kumar, Director (Production) at 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.”

India is also working on boosting its hydrocarbon output, as confirmed by a deal ONGC awarded to BP to tackle the decline in production levels at a giant oil field off the country’s west coast.

This came after ONGC held a flag-off ceremony in 2024 for the first crude oil offtake from a floating production, storage, and offloading (FPSO) working at Krishna Godavari, said to be the first deepwater development in India.