India is all set for the May 25 launch of bidding round for 67 discovered Small oil and gas fields by the petroleum ministry in New Delhi. The event will be presided over by Minister of State (I/C) for Petroleum & Natural Gas Dharmendra Pradhan.
Under the Discovered Small Field Policy, Government of India is offering 67 discovered small fields in 46 Contract areas spread over 9 sedimentary basins in onland, shallow water and deep water areas for bidding which have known hydrocarbon discoveries. These fields have been discovered by India’s National oil companies and are now being offered under exclusive policy which is designed to be investor friendly and is based on easy to administer Revenue Sharing contract model, in tune with the Government’s policy of ‘Ease of doing business’ in India.
This is being seen as a path-breaking initiative in the series of progressive policies being undertaken by Government of India in the Oil and Gas sector and more so as the bidding comes nearly six years after the last round in 2010.
More than 85MMT of in-place volume of reserves are there in these Contract areas. There will be a revised business model under Revenue Sharing Contract. It will involve International Competitive Bidding with no mandatory domestic participation. There is no mandatory prior technical experience required for the bidder nor is there any mandatory work program. There will be no cess, and minimal royalty is in line with earlier New Exploration Licensing Policy.
Goods and services imported for petroleum operations will be exempted from custom duty. The investors will not only get an opportunity to enter in Indian upstream market but will also experience freedom for pricing and marketing of Crude and Gas on arms length basis. The Contract extension clause is generous and there will be no restriction on exploration during the contract period. Road shows are being planned in India and abroad to attract investors for the Bidding Round.
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