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

3% of medicines are of poor quality: Survey

 More than three percent of medicines in India are ‘Not of Standard Quality’ (NSQ) and 0.0245 percent spurious, reveals a survey report on drugs quality by the ministry of health.  The survey carried out by National Institute of Biologicals (NIB), Noida found that out of the

BEL unveils new weapon system for MBT Arjun tank

 Bharat electronics limited (BEL) has launched a new weapon control system — Remote Controlled Weapon Station (RCWS) / Air Defence Weapon Station (ADWS) for 12.7 mm gun of MBT Arjun Mk II battle tank during recently concluded Aero India 2017 in Bengaluru. The new weapon control system

Sasikala camp in talks with OPS faction

 The Sasikala camp is in talks with the O Panneerselvam (OPS) faction and they are trying to win them over, says an AIADMK insider. Negotiation have started between the main AIADMK, which is with Sasikala, and the splinter group that is supporting former chief minister OPS. The party insider

Stories to read over the weekend

On October 1 last year, Mehtab Alam Ansari, 30, who worked as a tailor in Delhi, had arrived in his village, Chepa Khurd in Barkagaon tehsil of Harazibagh district, to celebrate Eid with his family. That morning, he was nearing Dadi Kalan, a neighbouring village, to meet an acquaintance when he hea

ONGC to invest of Rs 7,327 cr for five projects

  State run enterprise oil and natural gas corporation limited (ONGC) has decided to invest Rs 7,327 crore to develop five projects to produce oil and gas. The decision was taken in its 290th board meeting held on February 23. The projects include development of R-Series fields, incl

Shiv Sena may again ally with BJP

The civic election results could well have long term implications in Maharashtra’s politics, with the Bharatiya Janata Party (BJP) doing dramatically well and the Shiv Sena failing to get a simple majority.   The Shiv Sena won 84 seats, while the BJP bagged 82 seats. Th

Video

Digital Transformation Summit

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter