India to auction 69 small and marginal oil and gas fieldsStaff writer ▼ | September 3, 2015
India approved a proposal to auction 69 small and marginal oil and gas fields surrendered by two state-run explorers, in a move aimed at boosting domestic output, Oil Minister Dharmendra Pradhan said.
Oil industry Oil Minister Dharmendra Pradhan:
The bidding process for the unexploited fields, surrendered by Oil & Natural Gas and Oil India, is expected to start in three months, Pradhan said, adding that the fields have reserves of around 89 million tons of oil and gas valued at 700 billion rupees ($10.54 billion).
The two state-owned explorers couldn't monetize the resources for many years due to a number of factors, including isolated locations, high development costs and technological constraints, the minister said.
The government hopes that private companies will be able to overcome the hindrances. In order to facilitate exploration and investments by the private sector, the Oil Ministry proposes easing certain policies related to sharing of revenue with the government, Pradhan said. ■