The Cabinet Committee on Economic Affairs (CCEA) gave its approval to award contracts in 31 contract areas of ‘discovered small fields’ of Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL).
The approval was given at a meeting of the CCEA chaired by the Prime Minister Narendra Modi on 15 February 2017 in New Delhi.
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 and fiscal regime.
How the Cabinet’s approval will benefit the country?
• The award of contracts is expected to provide faster development of the fields.
• It is expected that in-place locked hydrocarbon volume of 40 Million Metric Tonnes (MMT) of oil and 22 Billion Cubic Meters (BCM) of gas will be monetised over a period of 15 years.
• The production from these fields will also supplement the domestic production and increase energy security of the country.
About Small Field Policy Bidding Round – 2016
• On 25 May 2016, the Union Government launched the Discovered Small Fields (DSF) Bidding Round – 2016.
• It is an international competitive bidding round of acreage award.
• Under this bidding round, 46 contracts were on offer comprising of 67 oil and gas fields distributed across 9 sedimentary basins.
• Out of the 46 contract areas, 26 are located on land, 18 are in shallow water and 2 are in deep water offshore.
• Till now, 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 the rest 4 are foreign companies.
• The main components of the policy are uniform license for exploration and production of all forms of hydrocarbon, an open acreage policy and revenue sharing model.
When: 15 February 2017