DSF Round 3 auctions: 32 contract areas comprising 75 discoveries on offer

Production at DSF-1 Elao field expected to start in a week

The third round of auctions under the Discovered Small Fields (DSF) regime for oil and gas blocks was launched on Thursday. Under this bid round, 32 contract areas comprising 75 discoveries are on offer. These exploratory fields are spread over nine sedimentary basins covering an acreage of about 13,685 square kilometres and have a potential of approximately 232 million tonnes (mt).
 
These oil and gas discoveries were made by public sector undertaking oil companies, ONGC and Oil India. But they were eventually relinquished, citing unviability. This was either due to their small size or because of the restrictive fiscal regimes under which they were awarded to these firms.
 
There are 19 onshore, 54 shallow water and 2 deepwater discoveries on offer in this third round, the largest so far.
 
According to Petroleum Minister Dharmendra Pradhan, production from a block awarded in the first round is going to start within a week. He said this while speaking at an event to mark the launch of the third round.
 
According to officials in the know, Pradhan was talking about a CB/ONDSF/E LAO/2016 field in Gujarat. This onshore gas field in the Cambay basin was bagged by Kolkata-based PFH Resources.
 
 The company also won two blocks in the Krishna Godavari (KG) basin in Andhra Pradesh during that round. Pradhan said: “The petroleum ministry and Directorate General of Hydrocarbons should devise innovative ways for early resource monetisation."