The Cabinet Committee on Economic Affairs chaired by the Prime Minister, Narendra Modi, today gave its approval to award contract in 31 contract areas (44 fields – 28 onland and 16 offshore) of discovered small fields of Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL).
These areas were discovered long back but these discoveries could not be monetized due to various reasons such as isolated locations, small size of reserves, high development costs, technological constraints, fiscal regime etc.
For early monetization of these fields, in September, 2015, Cabinet approved 69 marginal fields for offer under
Discovered Small Fields Policy. Out of these, 67 Discovered Small Fields were clubbed into 46 contract areas and put
on offer through online international competitive bidding. A total of 134 e-bids were received for 34 contract areas. A total of 47 companies submitted their bid, out of which 43 are Indian Companies and rest 04 are foreign companies.
These contract areas have been awarded under the new regime of Revenue Sharing Model. Award of contract is expected to provide faster development of fields and facilitate production of oil and gas thereby
increasing energy security of the country.
It is expected that in-place locked hydrocarbons volume of 40 MMT oil and 22.0 BCM of gas will be monetised over a period of 15 years. The production from these contract areas will supplement the domestic production.
The list of successful bidders recommended for award includes Prize Petroleum Company Limited, Bharat PetroResources Limited, PFH Oil and Gas Pvt Ltd, Indian Oil Corporation Ltd, Adani Welspun Exploration Ltd.,
Sun Petrochemicals Pvt. Ltd., KEI-RSOS Petroleum & Energy Pvt Ltd and others.