oil-investmentThe Oil and Natural Gas Corporation (ONGC) has got bids for 50 out of 64 small & marginal oil and gas fields it had tabled in a bidding round for raising production by involving private companies.

Twelve companies have placed 28 bids for 50 fields at the close of bidding on 17 January 2020.

ONGC clubbed 64 fields into 17 onshore contract areas that have a cumulative 300 million tonne of oil and oil equivalent natural gas reserves.

A total of 28 bids were received for 14 clusters, covering 50 fields, but none for three clusters that cover 14 fields.

Duganta Oil and Gas placed four bids, while Orissa Stevedores, Priserve Infrastructure and Udayan Oil Solutions made three bids each.

The salient features of the ONGC offering include complete marketing and pricing freedom to sell oil and gas on arm’s length basis through competitive system.

The contractor for the oil and gas fields will be selected on a revenue sharing basis. The revenue will be shared on incremental production over and above the baseline production under Business-As-Usual (BAU) scenario.

The contract period will be for a period of 15 years with an option to extend by five years.

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