Feb 23: Oil and Natural Gas Corporation (ONGC) and Oil India (OIL), backed by the Indian government, are expected to extend bids to present their fields to private players in the next six months.
In the initial listing, around 54 fields are owned by ONGC. In order to enhance the production and integrate novel technology into the sector, the Union Cabinet gave a green signal to the two Indian companies to participate in participation.
According to an official source, both the companies are planning to add 113 fields for enhanced production. For over 50 percent of the fields, the companies have enhanced oil recovery plans. The remaining fields will become part of the same policy.
OIL is expected to offer more than five of its fields. Both the companies are to employ a consultant for the same. The bids will be based on the report submitted by the consultant.
As of now, 71 percent of India’s total oil production at 35.7 million tonne (MT) and 75 percent of the total gas production at 32.65 billion cubic meter (bcm) is the contribution of ONGC.
As per reports, the companies which are to bid for the fields on offer for enhanced production will probably include service providers and small companies which were part of the discovered small field (DSF).
Rajiv Kumar, vice-chairman, Niti Aayog, talking at an India-Saudi meet, stated that he was the chairman of the committee on hydrocarbons and with the government’s approval for private company participation, country’s hydrocarbon production sector will get to explore more areas. He went on to say that India wants the Saudi company also to be part of the bid.
On February 19 the government stated that the selection of the bidders will be based on the 70 percent weight to work programme or on the investment, the company is going to make. Meanwhile, 30 percent will be the revenue share for the government.
The government had to modify its plan from offering the 149 ONGC fields to private players to the new one due to the criticism from the ONGC employees.