The Oil & Natural Gas Corporation (ONGC) has invited bids for partnership to raise production from 64 marginal fields that were given to the company by the government without bidding. As they are small in size, these fields are uneconomical for a larger company.
The 49 marginal producing oil and gas fields, spread across 13 onshore contract areas, were awarded to seven companies. The deals were made under a government plan to raise production from these acreages that are not economical for the state-run flagship explorer.
Revenue will be shared on incremental production over and above the baseline production under business as usual. The selected contractors will not be required to reimburse any expenditure on the fields already incurred by ONGC.
These contracts will be for a period of 15 years, with an option to extend by 5 years.
