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Bidding begins: 120 companies in fray for 67 oil and gas fields
At least 120 companies are bidding for 67 small and marginal oil and gas fields. The Union government had launched the bidding process for discovered small fields, earlier this year. The government is hoping to attract start-ups and private equity players. The 47 contract areas carved out of 67 oil and gas fields on auction are discovered small fields (DSF) taken out of the kitty of state-owned Oil and Natural Gas Corporation and Oil India. The Directorate General of Hydrocarbons (DGH), an arm of the petroleum and natural gas ministry, is conducting the bidding process, which is expected to be over later in the day.
The bidding process has failed to grab interests from major global players even as state-run ONGC and Oil India have decided to stay away from the ongoing auctions. After a six-year hiatus, India is auctioning its oil and gas acreage. The UPA government conducted the last auction under the New Exploration and Licensing Policy (NELP) in October 2010 when crude oil price benchmarked to the Indian basket was $81 a barrel. The Discovered Small Field Policy provides for a uniform licence for exploration and production of all forms of hydrocarbon, an easy to administer revenue sharing model and marketing and pricing freedom for the crude oil and natural gas produced. Further, the contractor will have rights for exploration throughout the contract period. Toronto Maple Leafs Jersey
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