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Shell, Reliance, and ONGC set benchmark with India’s first offshore facilities decommissioning project

FWM by FWM
May 5, 2025
in Business
0

New Delhi, May 5, 2025: In a landmark achievement for India’s energy sector, the Panna-Mukta
and Tapti (PMT) joint venture partners – Shell (through BGEPIL), Reliance Industries Limited
(RIL), and Oil and Natural Gas Corporation Limited (ONGC) have successfully completed the
country’s first offshore facilities decommissioning project with the safe removal of mid and south
Tapti field facilities.

The PMT JV, operator of the Tapti fields under a production sharing contract with the Government
of India, comprises of ONGC with a 40% participating interest, and RIL and BG Exploration &
Production India Ltd (BGEPIL-Shell) with 30% each.

The milestone 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.

Aligned with the Government of India’s ‘Make in India’ vision, 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.

ADVERTISEMENT

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. 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’,” said Sanjay Barman Roy, President, E&P,
Reliance Industries Limited

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.

FWM

FWM

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