Government to launch second round of small oilfield auction


Government to launch second round of small oilfield auction

The government will launch the second round of small oilfield auction in 2017-18, and introduce a policy to incentivise production from ageing fields in a bid to raise oil and gas output declining for the past few years, the oil minister has said.

“Looking at the success of the bidding round of discovered small field (DSF), we are preparing ourselves for DSF round II,” Dharmendra Pradhan said at an industry meet where executives and academics discussed new technologies to enhance production at depleting fields.

Last month, India announced winners of the first round of the DSF bid, where successful bidders mostly included newcomers. The government had received 134 bids for 34 of the 46 contract areas in an auction in November. The next round will include fields that didn’t receive bid this time as well as some new fields that belong to state companies such as Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) but haven’t been developed yet.

The government will also come out with a policy to incentivise production from ageing fields, Pradhan said. “More domestic production is heavily dependent on Enhanced Oil Recovery(EOR),” he said. Many Indian fields, especially that of ONGC, are saddled with depleting reserves and require EOR techniques to raise recovery of oil and gas. Read More…

 

Credit By: economictimes.indiatimes.com

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