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

Rise of Nirmala Sitharaman, plight of Baiga women and more from the week gone by

Today, Nirmala Sitharaman, India’s first woman full-time defence minister, may appear a picture of poise and confidence. But 11 years ago, she wasn’t even sure if she should join the Bharatiya Janata Party (BJP), which has allowed her political career – and, of course, her abilities &ndas

Modi’s gift to Varanasi: Projects worth Rs 1,000 crore

On his first visit to Varanasi after the Uttar Pradesh polls, PM Modi announced and laid foundation stones of various projects on Friday and Saturday. Addressing a public meeting in Varanasi on Saturday, PM Modi took took a jibe at the opposition saying that the BJP’s programmes are no

Indian Aviation Academy unveiled

Union minister for civil aviation, P Ashok Gajapathi Raju unveiled a new campus of the Indian Aviation Academy (IAA) spread over 5.33 acres. Civil aviation, secretary, R N Choubey said India is poised to attain its coveted place on global aviation arena as one among top three largest aviatio

BHEL surpasses 12th plan capacity addition target

Attributing enhanced focus on project execution as the reason behind Bharat Heavy Electricals Limited’s (BHEL) growth, the enterprise’s CMD Atul Sobti said BHEL achieved a capacity addition of 45,274 MW during the 12th five year plan period (2012-17) and surpassed the target of 41,661 MW by 9 p

No right to plan their families

Bhadiya from Bhanpur Kheda village does not know her age. She has five children – the eldest one is 12-year-old while the youngest is an infant. Considering she got married in her teens – like most women in her village – Bhadiya must be in her 30s. After giving birth to five children she

SAIL to leverage domestic growth potential

Steel authority of India (SAIL) chairman PK Singh expressed confidence on improving the performance of the Maharatna PSU in the current fiscal because of a host of initiatives in almost every area of operations. During 45th annual general meeting of the company, Singh said the world steel as



Video

Falahari Maharaj arrested on rape charges

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter