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DGH reviews poor bidding response to oil & gas fields: Sources
India’s first oil and gas fields’ auction in over 4 years is in deep trouble. CNBC-TV18 reports initial bidding has not met government expectations despite several exploration incentives and market-linked pricing, forcing an extension in auction deadline. The government had already extended the deadline for bidding from October 31 to November 21. Sources say investors have conveyed to the Directorate General of Hydrocarbons (DGH) their concerns on the size of the marginal fields as well as the data available and that they would prefer to wait for some issues to be addressed before bidding.
They have also suggested the adjoining areas be made available for exploration and the Oil Ministry is considering a follow-up auction for these areas. Oil Ministry is reportedly also considering clubbing of more blocks to attract bids by the November 21 deadline. Delino DeShields Jersey
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