In A Massive Offshore Bid, India Offers 26 Oil And Gas Blocks
October 13, 2022: New Delhi: Indian shares traded in the green on Wednesday morning, after three sessions of losses, mostly as a result of price buying by investors.
On Wednesday, at 9.44 am, the Sensex was trading 281.13 points or 0.49 per cent and the Nifty was up 80.25 points or 0.47 per cent at 17,063.80.
According to the data of the National Stock Exchange, a total of 41 declines and 9 gains were seen in Nifty 50 stocks this morning. Relative fall in global crude oil prices may also support the equities. investors’ concerns.
In a massive round of offshore offerings, India is offering 26 blocks or areas for oil and gas discovery and production, upstream regulator DGH announced on Tuesday.
In a massive round of offshore offerings, India is offering 26 blocks or areas for oil and gas discovery and production, upstream regulator DGH announced on Tuesday.
In a separate phase, 16 coalbed methane (CBM) prospecting locations will also be available at the same time.
The General Directorate of Hydrocarbons (DGH) stated without giving a deadline for the tender that the “government announces the offer of 26 blocks covering an area of around 2.23 lakh square kilometers for exploration and development through competitive tenders. Worldwide”.
The Hydrocarbons Exploration and Licensing Policy (HELP), which was published on March 30, 2016, is the 2016 policy that is guiding the bidding rounds.
Since then, 134 E&P blocks have been awarded following the conclusion of seven Open Acreage Licensing Program (OALP) bidding rounds. These blocks encompass 19 sedimentary basins and a total size of 2,07,691 square km.
An eighth round with ten zones was introduced in July. It has not yet been revealed who won that round.
If the Round VIII blocks are successfully awarded, an additional 36,316 km2 of exploration acreage will be added, bringing the total amount of exploration acreage under the OALP regime to 244,007 km2.
The DGH refers to the most recent round as the “Overseas Bidding Round (OALP-IX Bidding Round) under HELP.” Almost as much space is available for exploration at OALP-IX as was auctioned in the previous eight rounds combined.
The 16 CBM blocks offered in the special bidding round, according to DGH, are distributed among Madhya Pradesh (4), Chhattisgarh (3), Telangana (3), Maharashtra (2), Odisha (2), Jharkhand (3 ), and West Bengal (4). (1 each).
CBM blocks are sold on a revenue share basis, similar to OALP; companies that provide the government with most of their profits will get the block.
Blocks in low-lying prospects are an exception to this rule, where the work schedule, such as seismic imaging or well drilling, will be the deciding factor.
In addition to a revenue-sharing contract model, HELP offers attractive and liberal terms such as lower royalties, no oil taxes, no revenue-sharing bidding for blocks in less promising basins, freedom in marketing and prices, bidding throughout the year, the ability of investors to carve blocks of interest, and a single license to cover both conventional and unconventional hydrocarbon resources, among others.
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