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60 Indian oil blocks to go under hammer

NEW DELHI

The second round of bidding for discovered small and marginal fields (DSF) in India’s the petroleum sector is set to take place in October.

“We are eyeing start-ups and small national and international companies. About 60 blocks will be on offer for the II round,” said an official.

According to sources, India’s Directorate General of Hydrocarbons (DGH) has shortlisted these blocks, now before the ministry of petroleum and natural gas for clearance. India is the third largest consumer of petroleum products, after America and China. The country’s share of global demand is expected to grow from the current 5.5 per cent to nine per cent by 2035.

The DSF rounds and the Open Acreage Licensing (OAL) policy round are considered vital for reducing of import, in the schedule approved by the ministry.

In the first round of DSF, blocks were awarded to 30 companies — 23 onshore and seven offshore ones. “The success of DSF Bid Round 2016 in the face of global economic slowdown and low oil prices manifests the benefits of the new E&P (exploration and production) regime for investors,” went a DGH presentation at the recent World Petroleum Congress in Istanbul.

India has 26 sedimentary basins over 3.14 million square kilometres.

Agencies