NEW DELHI: Minor Margins Petroleum and Oil Minister Dara Pradhan today confirmed that the government plans to auction off gas fields in the coming months for companies to boost domestic production.

State-owned explorer ONGC and Indian Oil Corporation will relinquish low-producing small marginal fields due to production Economies of scale or operational issues. The fields are divided into auction blocks.

He was speaking at the 13th “We are identifying marginal fields for auction through a transparent process,” said the Indian Oil Conference organized by the Indian Energy Forum and ORFF /p National Oil and Natural Gas Corporation Oil and Natural Gas Corporation (ONGC) 63 Oil and gas has proven to be uneconomic for large companies with high development or production costs. economic. Smaller companies with lower operating costs can develop these fields faster and more economically.

Oil India Ltd (OIL) plans to give up six marginal divisions. Pradhan said the fields that ONGC and OIL are abandoning are those where production has not yet started.

“We are not asking them to do that (surrender), they are abandoning the field, which was ranked first in terms of nominations long before the new exploration licensing policy (1999) year) was introduced,” he explained.

The auction utilized a new revenue sharing model. Under the revenue-sharing model, bidders must specify up front how much oil and gas they will share with the government. The company with the highest revenue will get the rights to explore and produce on site.

This is a critique of Production Sharing Contracts (PSCs) in a system where blocks are allocated to the company with the highest workload. The system allows companies to recover all costs before sharing profits with the government. It delays government approval by encouraging operators to keep increasing costs.

“It’s a win-win for everyone: companies and governments benefit, and production increases,” he said.

ONGC owns about 165 marginal fields (79) offshore and 86 onshore). Of these, 633. are up for auction.

ONGC owns about 165 marginal fields (79) offshore and 86 onshore).

Prior to the licensing round, marginal fields were offered under nomination to ONGC. Hydrocarbon resources are bounded by these fields but cannot be produced economically on their own or by conventional methods.

Of the 165 fields with total reserves of 340 million tons, work has commenced since 139 and is yet to commence on 26.