Production of oil and natural gas production from the first set of onshore fields auctioned off under the so-called discovered small field policy (DSF) will commence by the end of this year.
Production of oil and natural gas production from the first set of onshore fields auctioned off under the so-called discovered small field policy (DSF) will commence by the end of this year, while offshore ones will go on stream by 2020-2021, according to Atanu Chakraborty, director general of hydrocarbons (DGH).
In the first round of bidding, out of 134 e-bids received, 30 contracts were signed which includes 23 onshore and seven offshore, and 20 companies were awarded individually firms or in consortia, he said.
According to the official, blocks offered have potential to generate hydrocarbon worth Rs 46,440 crore during the lifetime of these fields. The figure includes Rs 9,300-crore royalty to the government through taxes. Another Rs 5,000 crore is to be shared between the states and the central government.
Addressing a workshop on Open Acreage Licensing Program (OALP), Chakraborty said the first round of bidding in DSF has generated a lot of interest from small and medium entrepreneurs.
In OALP bid Round-I, under the Hydrocarbon Exploration and Licensing Policy (HELP), which was launched in January 2018, 55 selected blocks spread over about 59,282 sq km and located across 11 states have been offered. Of these 55 blocks, five are located in the Krishna-Godavari (KG) basin having resources to the tune of 9.5 mmtoe (million tonne of oil equivalent).
“India currently produces about 37 million tonne of crude oil as against demand for 110-120 mt. Our aim is to bring down oil imports by at least 10% by 2022. The demand is rising by 4-4.5% per annum,” Chakraborty said.
Of the 55 blocks being offered under OALP, with potential area of about 60,000 sq km, five more blocks are now being offered in the KG Basin.