<p>State-owned ONGC has received bids for 50 out of the 64 small and marginal oil and gas fields it has offered in a first of its kind bid round for raising production by involving private companies.</p>.<p>As many as 12 companies made 28 bids for 50 fields at the close of bidding on January 17, sources privy to the development said.</p>.<p>ONGC had clubbed the 64 fields into 17 onshore contract areas that have a cumulative 300 million tonne of oil and oil equivalent natural gas reserves.</p>.<p>The sources said 28 bids were received for 14 clusters, covering 50 fields, and no bids were received for 3 clusters covering 14 fields.</p>.<p>Duganta Oil and Gas Pvt Ltd made four bids, while Orissa Stevedores Ltd, Preserve Infrastructure Pvt Ltd and Udayan Oil Solutions Pvt Ltd made three bids each.</p>.<p>ONGC wants partners who can raise output beyond a pre-agreed baseline and will share revenues from such incremental production with them.</p>.<p>The sources said salient features of the ONGC offering include complete marketing and pricing freedom to sell oil and gas on arm's length basis through the competitive system.</p>.<p>The contractor will be selected on a revenue-sharing basis. The revenue will be shared on incremental production over and above the baseline production under Business-As-Usual (BAU) scenario, they said.</p>.<p>Contract period will be for 15 years with an option to extend by 5 years.</p>.<p>ONGC invited bids under the production enhancement contract (PEC) from the interested companies, who can bring in technology for raising the output.</p>.<p>The government has been unhappy with ONGC over its stagnant oil and gas production, and inducting partners in small and marginal fields was a way of raising output that was agreed to in a meeting with Prime Minister Narendra Modi in 2018.</p>.<p>ONGC had previously experimented with PEC contracts for two fields but has not been able to select a partner because of receiving conditional bids.</p>.<p>The latest PEC tender is on more liberal terms.</p>.<p>There will be a reduction of 10 per cent in the royalty rate for additional production of natural gas over and above BAU scenario.</p>.<p>Exploration will be permitted during the contract period, including the right to explore all kinds of hydrocarbon.</p>
<p>State-owned ONGC has received bids for 50 out of the 64 small and marginal oil and gas fields it has offered in a first of its kind bid round for raising production by involving private companies.</p>.<p>As many as 12 companies made 28 bids for 50 fields at the close of bidding on January 17, sources privy to the development said.</p>.<p>ONGC had clubbed the 64 fields into 17 onshore contract areas that have a cumulative 300 million tonne of oil and oil equivalent natural gas reserves.</p>.<p>The sources said 28 bids were received for 14 clusters, covering 50 fields, and no bids were received for 3 clusters covering 14 fields.</p>.<p>Duganta Oil and Gas Pvt Ltd made four bids, while Orissa Stevedores Ltd, Preserve Infrastructure Pvt Ltd and Udayan Oil Solutions Pvt Ltd made three bids each.</p>.<p>ONGC wants partners who can raise output beyond a pre-agreed baseline and will share revenues from such incremental production with them.</p>.<p>The sources said salient features of the ONGC offering include complete marketing and pricing freedom to sell oil and gas on arm's length basis through the competitive system.</p>.<p>The contractor will be selected on a revenue-sharing basis. The revenue will be shared on incremental production over and above the baseline production under Business-As-Usual (BAU) scenario, they said.</p>.<p>Contract period will be for 15 years with an option to extend by 5 years.</p>.<p>ONGC invited bids under the production enhancement contract (PEC) from the interested companies, who can bring in technology for raising the output.</p>.<p>The government has been unhappy with ONGC over its stagnant oil and gas production, and inducting partners in small and marginal fields was a way of raising output that was agreed to in a meeting with Prime Minister Narendra Modi in 2018.</p>.<p>ONGC had previously experimented with PEC contracts for two fields but has not been able to select a partner because of receiving conditional bids.</p>.<p>The latest PEC tender is on more liberal terms.</p>.<p>There will be a reduction of 10 per cent in the royalty rate for additional production of natural gas over and above BAU scenario.</p>.<p>Exploration will be permitted during the contract period, including the right to explore all kinds of hydrocarbon.</p>