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JUN 27 2016

Government trying to bring in startups for open bidding of small oil and gas fields

  • Economic Times, ET Bureau / Hyderabad
  • Created: Mon 27th JUN 2016

 

Union minister of petroleum and natural gas, Dharmendra Pradhan said that in the open bidding of small and marginal oil and gas fields which will start next month, government is trying to bring in start-ups to join the process.

Pradhan, who was in Guwahati on Saturday, told ET that government is working on if the net worth clause for start-ups may be reworked and instead bank guarantee can be taken for the start-ups. 'Already we have done away with experience clause for the Discovered small fields bid round."

The minister said that bidding will take place for 67 oilfields, out of which 12 are in Northeast India. In these fields there is resources worth Rs 70,000 Crore."We have simplified the bidding process so that start-ups with new technology can come in. It was start-ups will propelled the growth of Shale gas sector in US."

Pradhan added, "Local entrepreneurs can participate in a big way and make use of IIT Guwahati. "Guwahati roadshow was the second roadshow after Mumbai. The minister said, "By July 15 bidding will start and the whole process will be over by December this year."

According to the ministry Assam contributes 10 per cent of total crude oil and natural gas. Only 44 per cent of the resources has been tapped leaving an opportunity to establish and develop the remaining 56 per cent resource base.

The roadshow in Guwahati was attended by 200 participants including participation of industry leaders from Jubilant, GeoEnpro, Nippon Power, Eagle offshore, Jaybee energy, SKG Global, ONGC, OIL and BPCL. The discovered small fields bid round offers 46 contract areas which are estimated to hold in place oil and oil equivalent volumes of 86 million metric tonnes.

The minister said that bid round makes a shift from the earlier production sharing contract model to simpler and easier revenue sharing contract model.Peasant leader organisation Krishak Mukti Sangram Samiti opposed the FDI in oil sector. Protestors gathered outside a hotel where the roadshow was going on protesting against including 12 fields from Northeast India in the bidding.

 

Tags

TOTAL Assam Gas Natural Gas Oil ONGC Energy United States Petroleum Bharat Petroleum Corporation Limited Oil and Gas Foreign Direct Investment Mumbai Power Crude Oil India BPCL

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