New Delhi: Bid round –II under Discovered Small Field Policy was launched here today by Shri 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 start next month and 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, Shri Pradhan said that Systematic reforms have been initiated in the last four yearsin 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 basinsnow.
Features of DSF Bid Round–II are as below:
- No previous technical experience required for bidders, easy entry & investor friendly policy
- Large field areas on offer in already producing basins
- Established Hydrocarbon resource base of over 190 MMT (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
