Oil Majors Stay Away From Indian Auction of Small Gas Fields

India’s attempt to step up domestic output to cut the import bill suffered a setback when very few global oil majors turned up for the auction of 67 medium or isolated gas fields.

New Delhi (Sputnik) — The Indian government faced disappointment when the world’s oil and gas majors showed little interest in its auction of, 67 small and marginal gas fields.

Only 42 companies, of them just five foreign, turned in 134 bids despite road shows here and abroad.

This response despite low oil prices is testimony of India emerging as an attractive investment destination under leadership of Hon'ble PM

— Dharmendra Pradhan (@dpradhanbjp) 21 ноября 2016 г.

“The bid round took place in a challenging global market environment when oil & gas prices have been volatile and investment in the exploration & production sector has seen substantial decline,” noted a statement released by India’s Ministry of Petroleum and Natural Gas.

The Indian government has been taking several measures to step up domestic oil output in order to trim the oil import bill by 10 per cent in 2022. The recent auction of 67 blocks under revenue sharing was in line with this vision.

India also permits Foreign Direct Investment (FDI) across the hydrocarbon value chain covering the upstream, downstream and midstream sectors. The present FDI policy for petroleum & natural gas sector allows 100% automatic route for exploration and production.