Vedanta, ONGC, Oil India submit bids for discovered small field auctions

26 companies submit 106 bids in DSF – III for which the last date of submission was May 31



Topics

Vedanta  | ONGC | OIL India





Shine Jacob  | 
Chennai 





















As many as 26 companies have submitted 106 bids in the third round of discovered small field (DSF) auctions for which the last date of submission of bids was May 31. The list of companies includes Oil and Natural Gas Corporation (ONGC), Oil India (OIL) and Anil Agarwal-led Vedanta Ltd, among others.


The current round of DSF was launched for 32 contract areas, spread across nine sedimentary basins, covering an area of more than 13,000 square kilometres. Out of the 32 contract areas, 11 are onland, 18 are in shallow water and one is in deep-water. Vedanta has submitted 31 bids, while ONGC has around 13 bids during the current round.


Other companies in the list of bidders include Invenire Energy, Sun Petrochemicals, Megha Engineering and Infrastructures, Oilmax Energy, Ganges Geo Resources, Joshi Technologies and Duganta Oil and Natural Gas. Out of the 26 companies – four were public sector undertakings and 22 private sector players.


“This demonstrates the interest of public and private players in the Indian exploration and production sector. This time, blocks were awarded in clusters and hence it received so much interest,” said a source aware about the development. E-bids were received against all contract areas on offer. Out of the total 32 areas, 24 of them got multiple bids taking it to a total of 98 e-bids, while only eight of them got single bids. The government had announced DSF Policy in October 2015 and till now two rounds of DSF have been concluded for 54 Contract Areas. As many as 27 companies, including 12 new entrants had participated in the first two rounds of DSF. The current round of DSF is expected to have an in-place hydrocarbons of around 230 million metric tonne.


According to the government, the salient features of DSF policy are revenue sharing model, single license for conventional and unconventional hydrocarbons, no upfront signature bonus, reduced royalty rate in line with HELP (Hydrocarbon Exploration and Licensing Policy), no cess, full marketing and pricing freedom for gas produced, exploration allowed during entire contract period, and 100 per cent participation from foreign companies and joint ventures.


In the DSF Round – I launched in 2016, 134 bids were submitted for 34 contract areas by 47 companies. 30 Revenue Sharing Contracts were signed. In DSF Round – II launched in 2018, 145 bids were submitted for 24 contract areas. 24 Revenue Sharing Contracts were signed.


The first round saw as many as 22 companies winning bids for 31 contract areas. The gross revenue from the first round was expected to be around Rs Rs 46,400 crore. The government’s share was expected to be around Rs 14,000 crore. However, production is yet to start from any of these blocks, majorly because of economic slowdown and the pandemic. During the second round in February 2019, a total of eight companies won 23 contract areas. The second round was also expected to start production during the current year.


Dear Reader,




Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.


As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.


Support quality journalism and subscribe to Business Standard.


Digital Editor






Read More

Leave a Reply

Your email address will not be published.

You May Also Like

As Washington ramps up efforts to bring India on board with sanctions against Russia, U.S. treasury official on visit to Mumbai and Delhi

U.S. Assistant Secretary to discuss Russian oil purchases by India, rupee-rouble trade…

Eid-ul-Fitr moon sighting highlights: Saudi Arabia, India may mark Eid same day

Eid-ul-Fitr 2022 moon sighting highlights: There is a wafer-thin chance that Muslims…

सड़क, रेल, 5G… अरुणाचल बॉर्डर से सटे तिब्‍बत में क्‍या-क्‍या गुल खिला रहा चीन, सेना ने सब बताया

Edited by दीपक वर्मा | भाषा | Updated: May 17, 2022, 1:08…

Russia-Ukraine Crisis: Indian crisis: People without Covid-19 negative reports and unvaccinated Indians can enter Delhi airport

The Delhi airport issued a revised advisory to Indian citizens on Saturday…