Talking on the launch of the third spherical of public sale of small found fields, he mentioned corporations can not indefinitely sit on assets they could have found.
These assets truly belong to the nation and they are going to be monetised by bidding them out to entities, he mentioned.
As many as 32 oil and gasoline blocks with 75 discoveries have been provided within the Found Small Area (DSF) round-III.
These small and marginal fields had been found by state-owned Oil and Pure Fuel Company (ONGC) and Oil India Ltd (OIL) however they weren’t economically viable to be developed because of the fiscal regime and their small measurement.
Underneath DSF, liberal phrases together with pricing and advertising freedom are provided, making them viable.
“There will likely be no DSF subsequent time. Subsequent time, it is going to be a ‘main’ spherical (public sale of huge fields),” Pradhan mentioned.
He mentioned the Directorate Basic of Hydrocarbons (DGH), the oil ministry’s technical arm, has the “full mandate” to determine unmonetised main fields that might be provided for bidding.
“Assets do not belong to an organization. They belong to the nation and the federal government. They can’t lie with an organization indefinitely. If someone can not monetise them, we should convey a brand new regime,” he mentioned.
The assertion comes weeks after his ministry mentioned India’s largest oil and gasoline producer ONGC to promote a stake in producing oil fields similar to Ratna R-Sequence in western offshore to non-public corporations and get international companions in KG basin gasoline fields.
PTI had on April 25 reported a seven-point motion plan, ‘ONGC Method Ahead’. It was drawn by the ministry that referred to as for the agency to contemplate a sale of a stake in maturing fields similar to Panna-Mukta and Ratna and R-Sequence in western offshore and onshore fields like Gandhar in Gujarat to non-public corporations whereas divesting/privatizing ‘non-performing’ marginal fields.
It needed ONGC to usher in international gamers in gas-rich KG-DWN-98/2 block the place output is slated to rise sharply subsequent yr, and the just lately introduced into manufacturing Ashokenagar block in West Bengal. Additionally, recognized for the aim is the Deendayal block within the KG basin which the agency had purchased from Gujarat authorities firm GSPC a few years again.
“This ‘chalti ka naam gaddi’ (one thing that’s simply barely working) angle will now work. We’ve got to take daring choices,” Pradhan mentioned. “Idle, unmonetised assets, particularly with state-owned corporations, must be monetised.”
For a nation that imports 85 per cent of its oil wants, assets mendacity idle for a very long time can’t be permitted, he mentioned.
“Our goal to maximise manufacturing. So, we now have to have a look at all choices out there. We can not have a state of affairs the place fields are mendacity with some for a very long time and should not being developed,” he mentioned.
In DSF-III, 11 onshore blocks, 20 offshore and one deepwater space are being provided for bidding. These blocks, unfold over about 13,000 sq. kilometers, maintain 75 oil and gasoline discoveries with a mixed useful resource base of 230 million tonnes of oil and oil equal gasoline.
Within the earlier two rounds between 2016 and 2018, 54 blocks, taken away from ONGC and OIL, had been awarded.
In response to DGH, 29 subject growth plans entailing USD 1.76 billion funding have been submitted.
Oil manufacturing from the areas awarded in two rounds of DSF is envisaged to achieve 1.three million tonnes by 2024 and gasoline output to the touch 2.9 billion cubic meters.
The proposal made in April was the third try by the oil ministry to get ONGC to privatise its oil and gasoline fields.
In October 2017, the DGH had recognized 15 producing fields with a collective reserve of 791.2 million tonnes of crude oil and 333.46 billion cubic meters of gasoline, for handing over to non-public corporations within the hope that they’d enhance upon the baseline estimate and its extraction.
A yr later, as many as 149 small and marginal fields of ONGC had been recognized for personal and international corporations on the grounds that the state-owned agency ought to focus solely on bid ones.
The primary plan couldn’t undergo due to robust opposition from ONGC, sources conscious of the matter mentioned.
The second plan went as much as the Cupboard, which on February 19, 2019, determined to bid out 64 marginal fields of ONGC. However that tender acquired a tepid response, they mentioned.
The sources added that ONGC was allowed to retain 49 fields given that their efficiency will likely be strictly monitored for 3 years.
ONGC produced 20.2 million tonnes of crude oil within the fiscal yr ending March 31 (2020-21), down from 20.6 million tonnes within the earlier yr and 21.1 million tonnes in 2018-19. It produced 21.87 billion cubic metres of gasoline in 2020-21, down from 23.74 bcm within the earlier yr and 24.67 bcm in 2018-19.