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    India Awards 44 Oil & Gas Field Worth $7 Billion to New Entrants

    © AFP 2019 / SAM PANTHAKY
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    Indian government is working on five pronged strategy to reduce dependency on imports for energy security of $2 trillion economy.

    NEW DELHI (Sputnik) — In a bid to ensure optimum utilization of domestic resources, Indian government has awarded rights for 44 discovered oil and gas field to newcomers. This was the first auction of oil and gas fields in six years. Government statement indicates that out of a total of 22 companies who received contract to explore fields, 15 are new entrants including Sun Petrochemicals, Megha Engineering & Infrastructures. 

    “These areas were discovered long back but these discoveries could not be monetized due to various reasons such as isolated locations, small size of reserves, high development costs, technological constraints, fiscal regime etc.,” says India’s Ministry of Petroleum and Natural Gas.

    In 2015, Narendra Modi government had approved 69 marginal fields for offer under Discovered Small Fields Policy.  Out of these, 67 Discovered Small Fields were clubbed into 46 contract areas and put on offer through online international competitive bidding.  A total of 47 companies submitted their bids, out of which 43 were Indian companies and rest were foreign concerns.

    “It is expected that in-place locked hydrocarbons volume of 40 MMT oil and 22.0 BCM of gas will be monetized over a period of 15 years.  The production from these contract areas will supplement the domestic production,” says government.

    Indian government has initiated several programs to reduce oil imports as much as 10% by year 2022. India economy imports more than 80 percent of its crude requirement. Indian government has started working on five pronged strategy to ensure energy security namely- lowering the requirement of energy, substituting existing fuels with alternatives, expanding the domestic energy resource base through unconventional sources like shale gas/oil and gas hydrates, maintaining strategic reserve oil imports, acquiring energy assets abroad.

    Recently, Indian government had proposed to merge government owned oil companies to create an integrated public sector “Oil Major” which will be able to match the performance of international and domestic private sector oil and gas companies. India has also announced two more strategic reserve site for oil apart from three others already operational site in different locations in India.

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    oil, petroleum, oil imports, ministry, gas, resources, India
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