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Second auction of discovered oil, gas fields launched

IANS  |  New Delhi 

on Thursday launched the second round bidding for Discovered Small Fields (DSF) having 190 million metric tons (MMT) of and equivalent of more than Rs 1 lakh crore. It is likely to fetch Rs 45,000 crore for the government.

"Under this round, 25 contract areas covering 59 discovered and gas fields spread over 3,000 sq km having currently known volumes of 190 MMT or 1.4 billion and of gas are up for bidding," Pradhan said at the launch here.

The for and said that if there is a complete bid it is likely to generate Rs 45,000 crore for the government exchequer and 85,000 new jobs.

The bidding will start in September first week and will continue till December 18.

Launching the Notice Inviting Offer (NIO) and Model Revenue Sharing Contract (MRSC) for DSF Bid Round-II, Pradhan said all pending reforms in exploration and production (E&P) sector have been brought about in the last four years by the

Reforms like introduction of DSF policy, and Licensing Policy (HELP), National Data Repository (NDR) and Hydrocarbon Resource Reassessment Study are aligned to the four pillars laid down by Narendra Modi, he said. The pillars are access, efficiency, sustainability and security of

Of the 25 contract areas on offer, 15 are onland fields and 10 are shallow areas. There are six onland fields in and Tripura, four onland fields each in and and one in And, Mumbai has six shallow water areas, KG two, and one each in Mahanadi Offshore and Kutch Offshore.

The first round of bidding for DSF in 2016 had generated 134 bids for 34 contract areas of which 30 contracts were awarded. It saw entry of 13 companies that were new to the country's E&P industry. The first round is likely to fetch Rs 9,300 crore for government and generate more than 37,500 employment, officials said."In the first round, Rs 34,600 crore of hydrocarbon resources were awarded while in the second round it is above Rs 1 lakh crore," Pradhan said.

With just 17 per cent of proven basin, the country holds a huge potential for further exploration. India's fiscal attractiveness has also improved with the transition from (NELP) created in 1997 to HELP in 2016 that replaced production sharing contracts with revenue sharing contracts, the said.

--IANS

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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, August 09 2018. 21:36 IST
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