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India to auction 56 oil & gas blocks
January 6, 2014, 1:40 pm

India buys almost 80 per cent of its crude oil needs from overseas and is keen to tap domestic reservoirs [AP]

India buys almost 80 per cent of its crude oil needs from overseas and is keen to tap domestic reservoirs [AP]

India will offer at least 56 oil and gas blocks for bidding under completely revamped terms of gas-pricing and revenue-sharing, Oil Secretary Vivek Rae said on Monday.

“Gas pricing is the single most important decision that will encourage and invite more companies to invest in India,” Rae said.

This will be India’s first auction of licenses in nearly two years with bids to be most likely invited in February, said the Indian official.

“We will profile 56 blocks at the Petrotech conference next week. But notice inviting tender (or bids) will come out some time next month,” he said.

India buys almost 80 per cent of its crude oil needs from overseas and is keen to tap domestic reservoirs. India is competing with big oil-producing countries for exploration interest that could help it achieve energy self-sufficiency.

The official also said India plans to ask contractors to share revenues from the sale of hydrocarbons with the government.

“We are proposing to move to revenue-sharing model from the current production-sharing scheme. There will be no profit petroleum, no cost recovery, no investment multiple,” he said.

 

Source: Agencies

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