Lessons From Soggy Oil & Gas Auctions


Lessons From Soggy Oil & Gas Auctions

The response to India’s first open acreage auction for hydrocarbon exploration and development has not quite set the Yamuna on fire. No foreign oil major responded. Reliance kept away. Vedanta-Cairn has been recommended by an empowered committee of secretaries for award of 41of the 55 blocks on offer, and state-owned ONGC for two blocks.

Open acreage, not distinguishing between oil and natural gas, revenue-sharing instead of the profit-sharing after cost-recovery model, ill-suited for India’s trust deficient political economy — these are all sound features of the auction. Yet, the response has been tepid. The government needs to introspect why. Read More

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