(BS)
The Union government decided to offer the private sector bigger oil and gas areas that belong to its companies Oil and Natural Gas Corporation and Oil India on relaxed conditions. “To enhance production from existing nomination fields of ONGC and OIL, enhanced production profile will be prepared by both PSUs. For production enhancement, bringing new technology, and capital, national oil companies will be allowed to induct private sector partners,” said a government press release. Some 56 smaller contract areas of ONGC and OIL have been bid out to companies under the two rounds of discovered small fields over the last few years.
Though Union Finance Minister Arun Jaitley did not give details of the blocks to be auctioned, a senior government official said ONGC and OIL would conduct the bidding themselves. “Some 97 blocks were initially identified, but the final number could be around 64-65,” he said.
