Vedanta, ONGC, Oil India post bids for learned small discipline auctions

26 companies post 106 bids in DSF – III for which the closing date of submission turned into once Would possibly 31


Vedanta  | ONGC | OIL India

Shine Jacob  | 

As many as 26 companies obtain submitted 106 bids within the third round of learned small discipline (DSF) auctions for which the closing date of submission of bids turned into once Would possibly 31. The list of companies involves Oil and Natural Fuel Company (ONGC), Oil India (OIL) and Anil Agarwal-led Vedanta Ltd, amongst others.

The fresh round of DSF turned into once launched for 32 contract areas, spread across nine sedimentary basins, preserving a neighborhood of larger than 13,000 sq. kilometres. Out of the 32 contract areas, 11 are onland, 18 are in shallow water and one is in deep-water. Vedanta has submitted 31 bids, while ONGC has around 13 bids at some stage within the hot round.

Diversified companies within the list of bidders consist of Invenire Energy, Solar Petrochemicals, Megha Engineering and Infrastructures, Oilmax Energy, Ganges Geo Resources, Joshi Applied sciences and Duganta Oil and Natural Fuel. Out of the 26 companies – four had been public sector undertakings and 22 non-public sector gamers.

“This demonstrates the curiosity of non-public and non-non-public gamers within the Indian exploration and manufacturing sector. This time, blocks had been awarded in clusters and hence it bought quite a bit curiosity,” mentioned a supply privy to the pattern. E-bids had been bought in opposition to all contract areas on supply. Out of the total 32 areas, 24 of them bought a pair of bids taking it to a total of 98 e-bids, while most effective eight of them bought single bids. The authorities had announced DSF Policy in October 2015 and except now two rounds of DSF were concluded for 54 Contract Areas. As many as 27 companies, including 12 original entrants had participated within the major two rounds of DSF. The fresh round of DSF is anticipated to acquire an in-area hydrocarbons of around 230 million metric tonne.

Essentially based totally on the authorities, the salient capabilities of DSF policy are revenue sharing mannequin, single license for veteran and unconventional hydrocarbons, no upfront signature bonus, reduced royalty price per HELP (Hydrocarbon Exploration and Licensing Policy), no cess, elephantine marketing and pricing freedom for gas produced, exploration allowed at some stage in total contract period, and 100 per cent participation from foreign companies and joint ventures.

Within the DSF Round – I launched in 2016, 134 bids had been submitted for 34 contract areas by 47 companies. 30 Revenue Sharing Contracts had been signed. In DSF Round – II launched in 2018, 145 bids had been submitted for 24 contract areas. 24 Revenue Sharing Contracts had been signed.

The major round seen as many as 22 companies a hit bids for 31 contract areas. The shocking revenue from the major round turned into once expected to be around Rs Rs 46,400 crore. The authorities’s portion turned into once expected to be around Rs 14,000 crore. On the opposite hand, manufacturing is but to launch from any of these blocks, majorly thanks to financial slowdown and the pandemic. For the length of the 2d round in February 2019, a total of eight companies won 23 contract areas. The 2d round turned into once additionally expected to launch manufacturing at some stage within the hot Twelve months.

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