Simplifying the terms and conditions for oil & gas fields auction in India will drive production from newly discovered oilfields
India: The auction of discovered
oil & gas fields in the country will be launched in the month of May on
simpler contractual terms which includes pricing and marketing freedom. The
auction will be launched after a break of four years on May 25, 2016 with oil
minister launching the discovered small field bid round. The auction will be
done on revenue sharing model where the bidders quote the revenue which they
share with the government between the low and high end of price and production
band.
TechSci Research finds out that with government’s
decision to auction 69 idle oil and gas fields of state-owned ONGC and Oil
India to private companies will bolster the market for oil field services in
the country. The government’s policy to simplify the terms and conditions of
oil & gas fields auction and adoption of revenue sharing model will boost
the industry that leads to increase in exploration and production activity which
will promulgate the demand for field services in oil & gas sector.
According to released report of TechSci
Research “India
Oilfield Services Forecast & Opportunities, 2020”, the oil field services market in India is projected to surpass USD$ 7.8 billion by the end of 2020. The drilling job is one of the
major activity that is extensively done in a newly discovered oil & gas
fields and it accounts for largest share in the field services business.