Cabinet approves Discovered Small field Round II

The Union Cabinet has approved second round of Discovered Small Field (DSF) auctions under Discovered Small Field Policy. The auction will offer total of 60 discovered small fields/un-monetized discoveries with an estimated 194.65 Million Metric tonnes of oil.

Key Facts

Of the 60 fields, 22 fields belong to Oil and Natural Gas Corporation (ONGC), 5 to Oil India Limited (OIL), 12 are relinquished discovered fields from New Exploration and Licensing Policy (NELP) blocks. It also includes 21 fields that did not receive any investor interest in first round of DSF (i.e. DSF I).
The Empowered Committee of Secretaries (ECS) comprising of Secretary (Petroleum & Natural Gas), Secretary (Expenditure) and Law Secretary will finalize and approve Model Revenue Sharing Contract, and other documents for DSF Round-ll. The award of contract will be approved later by Minister of Petroleum and Natural Gas and Minister of Finance based on the recommendations of ECS.

Significance

These fields will be developed and monetized faster. It will augment production of oil and gas leading to enhance energy security of the country. The investments into these fields will lead to estimated generation of over 88,000 jobs as direct, indirect and induced employment. This policy will be also extended for future round of bidding.

Background

The Union Ministry of Petroleum and Natural Gas had launched first round of DSF in May 2016 under new liberalized DSF policy. Under it, 46 contract areas consisting of 67 fields spread across 9 sedimentary basins were auctioned. The auctions had witnessed 134 e-bids for 34 contact area. Later, 22 companies were shortlisted for 31 contract areas of which 15 companies were new entrants with no prior experience in the sector.

Month: Current Affairs - February, 2018