69 marginal oil and gas fields to be auctioned

These fields owned by ONGC and OIL are to be given up due to poor output

GN Bureau | April 21, 2015



Auctioning of 69 marginal oil and gas fields owned by Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) would be held soon, said oil secretary Saurabh Chandra on Tuesday.

"Marginal field policy will have the approval for 69 fields which ONGC and Oil India have agreed to give. We hope to put them for bidding," Chandra said in New Delhi.

Saurabh Chandra said that the two state explorers would invest $ 6 billion in exploration and production in the year ending March 2016, as they look to arrest declining oil and gas production.

The auctions will be on a new revenue-sharing model. The petroleum ministry has floated a note for the cabinet committee on economic affairs for auctioning the fields that state-owned firms are “surrendering” because they were uneconomical to develop due to the government’s mechanism.

Companies, offering the maximum revenue share or percentage of oil and gas to the government and committing to do more work, will win the field.

The weightage for revenue share will be 80 percent while 20 percent would be for work programme that may include drilling of exploratory and development wells and seismic studies. As many as 63 discovered oil and gas fields are being surrendered by ONGC and another six by OIL. Developing these small and marginal fields was uneconomical after paying for fuel subsidies.

Meanwhile, the ONGC stock price was quoted at Rs 326.15, up Rs 4.40, or 1.37 percent. The 52-week high of the share was Rs 472.00 and the 52-week low was Rs 301.00. The company's trailing 12-month (TTM) EPS was at Rs 21.84 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 14.93.

 

Comments

 

Other News

BJP lawmakers top the list in hate speech cases

Out of all MPs and MLAs in office, 58 have declared cases related to hate speech. This includes union minister for drinking water and sanitation Uma Bharti along with 14 other Lok Sabha MPs. The list also includes 8 state ministers. A party wise analysis reveals that BJP has the highest numb

After its withdrawal from Meghalaya and Arunachal, is it time to review AFSPA in other areas too?

After its withdrawal from Meghalaya and Arunachal, is it time to review AFSPA in other areas too?

Togadia, Sinha and anti-Modi prejudices masked by empty rhetoric

There is an uncanny similarity in the pathological opposition to prime minister Narendra Modi by two members of the right wing, Pravin Togadia and Yashwant Sinha. They come from a diverse social and political background; yet they share a common strand that shows an unmitigated hatred towards

“We are becoming American digital colonies”

Data is the new oil; and it needs to be protected. In an interaction with Governance Now, Lionel Baraban, CEO of Famoco, talks about how the French tech firm is developing secure business devices to safeguard data against going to other countries. What are the major roles o

Goa Shipyard and MTU, Germany to manufacture MTU engines in India

Goa Shipyard Ltd (GSL) and MTU, Germany have agreed to cooperate in the  local manufacturing of technologically-advanced MTU series 8000 engines in India. Under the agreement, which was signed at India’s leading defence trade show Defexpo-18, the companies will manufacture the 16-

ONGC employees bag 13 medals at the Gold Coast CWG

ONGC sportspersons outshone other participants in their respective categories in the recently concluded Commonwealth Games in Gold Coast, Australia. ONGCians bagged 13 medals including 5 Gold, 3 Silver and 5 Bronze, contributing to the 66 medal tally of Team India. ONGCians Ragala Venkat Rah

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter