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According to bid information available with DGH, Vedanta-owned Cairn India will attract a penalty of $0.1 million if it fails to fulfil exploration commitment for the 41 oil blocks won under OALP. Award of blocks were based on the commitment to explore and drill for oil and gas, and government’s share in the hydrocarbons produced. DGH gave equal weightage to both these parameters.
An official probe has found Reliance Industries’ sale of its entire CBM output to itself in violation of contractual terms and state policy on CBM. The probe finding can force Reliance to terminate the gas-sales deal and re-auction further produce. Billionaire Mukesh Ambani-owned RIL commenced production of CBM at Madhya Pradesh mines in 2017.
The Directorate General of Hydrocarbons (DGH) yesterday announced the results of the maiden open acreage auction, with Vedanta Group winning big. The auction received 110 bids for the 55 blocks on offer, and Vedanta received licenses for 41 of them. Vedanta played aggressive in the auction, placing bids on the entire blocks on auction. ONGCs conservative bids landed it only 2 blocks, while OIL won licences to 9 blocks.
A new assessment by the Directorate General of Hydrocarbons (DGH) has revealed that India possesses 42 billion tonnes of oil equivalent reserves. Oil reserves in India were projected to be around 28.09 billion tonnes in 1996. The newly assessed data shows a 49% jump from the previous estimates. The report claims that the Mumbai Offshore and Krishna-Godavari basins contribute the most to the country’s energy future with the maximum reserves.
In a bid to increase its reserve base, Vedanta Limited is planning to invest $2.3 billion towards CAPEX on its oil and gas activities. Vedanta is targeting an increase in production from the current 200,000 barrels of oil equivalent per day to 300,000 boepd over the next few years. Under the OALP auction, Vedanta recently bid for all 55 blocks on offer in the first round.
The second auction of small discovered oil and gas blocks in India was launched yesterday. The South Asian nation is looking to quickly monetize its hydrocarbon resources. In the first week of September, the bidding for 59 fields will begin which will close on December 18. Oil Ministry informed that the blocks offered under the latest round have reserves of about 1.4 billion barrels.
The Indian Oil Ministry has rejected Directorate General of Hydrocarbon’s (DGH) reference that companies be allowed to carry forward exploration in their producing fields irrespective of its effect on the government’s share in the profit. This decision is being owed to an informal calculation by the ministry where the loss of thousands of crores was estimated in case DGH’s proposal was approved.