The Indian government will launch a small field bidding round tomorrow (25 May) that consists of 67 discovered small fields in 46 shallow water, deepwater, and onshore contract areas.
The Discovered Small Field Bidding Round – 2016 will be launched in New Delhi. Under the Discovered Small Field Policy, the Indian government will be offering 67 discovered small fields in 46 contract areas spread over nine sedimentary basins in onshore, shallow water and deepwater areas for bidding which have known hydrocarbon discoveries of more than 85 million tonne of in-place reserves.
These fields have been discovered by India’s national oil companies ONGC and OIL, and are now being offered under exclusive policy which is designed to be investor friendly and is based on an easy to administer revenue sharing contract model, in tune with the government’s policy of “Ease of doing business” in India.
The Indian government will initiate a revised business model under revenue sharing contracts that will involve international competitive bidding with no mandatory domestic participation. In addition, the government said there is no mandatory prior technical experience required for the bidder nor is there any mandatory work program.
“The investors will not only get an opportunity to enter in Indian upstream market but will also experience freedom for pricing and marketing of crude and gas on arms length basis. The contract extension clause is generous and there will be no restriction on exploration during the contract period. Road shows are being planned in India and abroad to attract investors for the bidding round,” the government said.
Image from ONGC.
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