India will auction 67 small oil and gas fields on 25 May that will test some of the key policy changes introduced by the government in the upstream sector, local media The Economic Times reported.
The fields previously held by ONGC and OIL will be offered in 46 contract areas through the new revenue sharing model. This auction will be the first in about five years in the country.
In March, the Indian Ministry of Petroleum and Natural Gas announced investor-friendly policies, which included uniform licensing, open acreage policy, easy revenue sharing model, and marketing and pricing freedom for produced hydrocarbon.
Through uniform licensing contractors can explore conventional and unconventional resources under a single license, while open acreage policy allows companies to choose blocks from designated areas.
Under the new revenue sharing model, the government will only receive a share of the gross revenue from the sale of the product. The new policy also allows successful bidders to sell at the prevailing market price of gas, rather than at the administered price.
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