According to Ministry of petroleum, Dharmendra Pradhan, government has announced auction of oil and gas fields of ONCG which are unmonetized in order to boost up economy’s ability to produce hydrocarbon.
Pradhan said, that the companies could not work for the resources they have discovered. As many as 75 discoveries and 32 gas and oil blocks have been offered for Discovered Small Fields (DSF), he added.
The marginal fields and gasses which were discovered by the state owned oil and natural gas (ONCG) and Oil India limited (OIL) were not economically viable to be developed due their small sizes and fiscal regime.
However, under the Discovered Small Fields (DSF) policies, in order to make the fields under the program viable, liberal terms of policies are offered, including pricing and marketing freedom.
After, Pradhan’s ministry said, the India’s largest oil and gas producing company ONCG announces to sell a stake in producing oil fields such as private firms to R-Ratna series in western off-shore, in order to get foreign partners in oil fields.
Pradhan says, “There will be no DSF next time. Next time, it will be a ‘major’ round (auction of large fields),” adding that the Directorate General of Hydrocarbons (DGH), the oil ministry’s technical arm, has the “full mandate” to identify unmonetized major fields that could be offered for bidding.
“Resources don’t belong to a company. They belong to the nation and the government. They cannot lie with a company indefinitely. If somebody cannot monetize them, we will have to bring a new regime.”
“This ‘chalti ka naam gaddi’ (something that is just barely working) attitude will now work. We have to take bold decisions,” he went on to say, “Idle, unmonetized resources, especially with state-owned companies, need to be monetized.”