MoPNG launches Bid round – II under Discovered Small Field Policy

India is the world's fifth-largest economy with the size of over 2.6 Trillion USD. Recently, it surpassed France and soon India is set to leapfrog Britain to become the four th-largest economy. India is the 3rd largest energy consumer in the world. Its energy consumption is expected to grow by 4.2% p.a. which is faster than all major economies. According to the International Energy Agency (IEA), India is expected to account for almost one-third of the global growth in energy demand by 2040.

To maintain the thrust on economic growth, it is imperative that the country's Oil & Gas sector grows consistently so as to enable energy security and accessibility to its people. In addition to several other reforms, Government has implemented new contracting policies such as the Open Acreage Licensing Policy (OALP), and the Discovered Small Fields (DSF) policy. These are primarily based on the four energy pillars as laid by Hon'ble Prime Minister Shri Narendra Modi viz. Energy Access, Energy Efficiency, Energy Sustainability and Energy Security.

Bid round - II under Discovered Small Field Policy was launched by Mr. Dharmendra Pradhan, Minister of Petroleum and Natural Gas & Skill Development and Entrepreneurship. He also released the Model Revenue sharing contract and Notice Inviting Offer for the same. The bids will close in December 2018. The signing of contracts with the successful bidder for 59 discovered small fields clubbed into 25 contract areas is likely to be done in January next year. Speaking on the occasion, Mr. Pradhan said that Systematic reforms have been initiated in the last four years in the Hydrocarbon sector, which have brought about consistency, certainty, and transparency in the policy making. The Government has shown that it is capable of taking strong and clear decisions in the national interest. All these factors have made India a preferred destination for foreign investors. Encouraged with the Success of Bid Round-I, the Minister expressed the hope that there will be massive interest from Industry, especially from Private Sector since the Government is offering larger field areas in commercially producing basins now.

Features of DSF Bid Round–II include:
  • No previous technical experience required for bidders, easy entry and investor friendly policy
  • Large field areas on offer in already producing basins
  • Established Hydrocarbon resource base of over 190 MM T ( O+OEG)
  • Better fiscal system through Revenue Sharing Contracts
  • Area having oil/gas discoveries; Potential of upsides in the area; Ready processing facilities nearby; Ready market
  • Easy bidding process; minimum requirements; transparent award; swift processing of approvals
  • Single licence for all types of hydrocarbons
  • No signature bonus
  • Exploration allowed during the entire contract period
  • Full pricing and marketing freedom
  • Royalty rates further reduced for shallow water compared to DSF-I