After a gap of 6 years, India is once again gearing up to auction oil and gas fields and this time it will be 67 of them, which have been lying undeveloped for years with ONGC and Oil India.
To make these fields more attractive, the government has set some liberal terms, including a more favourable revenue-sharing formula. Oil & Gas Minister Dharmendra Pradhan is pushing ahead to achieve Prime Minister Narendra Modi’s target of cutting India’s dependence on fuel imports by half by 2030. That’s why, after a gap of 6 years, the ministry has decided to auction 67 small oil & gas fields which have marginal discoveries, for commercial production. These fields are estimated to 48 million tonnes of oil reserves, and 38 billion cubic meters of natural gas reserves. The 67 fields, which include 26 onshore fields, 18 shallow water fields and 2 deep-water fields, were for years controlled by ONGC and Oil India , but were returned unexplored due to their small size and the high cost of development. But the government believes these fields will garner active interest from companies.