PNG Minister Dharmendra Pradhan led Interactive Meet for Discovered Small Field Bid Round 2016 held at Singapore
Singapore: A delegation of Government of India led by Minister of state (I/C) for petroleum and natural gas shri Dharmendra Pradhan and other dignitaries from India organized an interactive meet in Singapore today.
Government of India has recently introduced various flagship programmes such as Make in India, Digital India and Smart City in addition to various others that have presented great opportunities for prospective bidders to be a part of India’s fast paced growth story. Also, reforms under ease of doing business enable a facilitative regime for businesses to setup and operate in India. In continuation of this, the Discovered Small Field Bid Round 2016 has also been introduced under a transparent, simplified and facilitative regime.
Since the launch of the bid round on 25th May 2016 in New Delhi, multiple interactive meets across India and various international locations – Houston, Calgary and Dubai have been conducted all of which marked great participation from Top business leaders, Government Dignitaries, Ambassadors, with extensive coverage by several international and national media houses.
With 7.6% GDP in FY 2015 – 16, the demand for energy in India has increased dramatically and is predicted to increase even further in the coming years, thereby, placing an enormous demand on its energy resources, despite supply constraints. The per-capita energy demand in India has grown by 46% since 2000, yet it remains only one-third of the world average, which signifies the increasing need to augment energy supplies.
The Ministry of Petroleum and Natural Gas officials highlighted Government of India’s initiative of offering 46 Contract Areas consisting of 67 small fields across 9 sedimentary basins for exploration and production of oil and gas in India, in line with Honorable Prime Minister’s vision of reducing import dependency in oil and gas by 10% by 2022.
Directorate General of Hydrocarbons (DGH), the technical arm of the Ministry of Petroleum and Natural Gas is inviting bids (through International Competitive Bidding mechanism) for these areas which hold 625 Million Barrels of Oil and Oil Equivalent Gas (O+OEG) in-place volumes, spread over 1500 sq. Km. ( in 26 Onland, 18 shallow water and 2 Deep water areas.
Several key features of the bid round were discussed such as – single uniform license for conventional as well as unconventional hydrocarbon resources, Revenue Sharing Contract Model replacing the erstwhile Production Sharing Contract Model, freedom in pricing and marketing for oil and gas produced and various fiscal incentives such as no oil cess, exemption of custom duty and graded royalty rates. The new policy regime emphasizes India’s commitment for implementation of reforms to enable ease of doing business.
The Indian High Commissioner at Singapore, Ms. Vijay Thakur Singh impressed upon the India – Singapore trade relations and highlighted the efforts made from both the respective governments to improve the investor sentiment as well as strengthen the economic ties.
Mr. K. D. Tripathi, Secretary, MoPNG quoted ‘Singapore as India’s foremost partners in the Asia Pacific region across economic sectors such as pharmaceuticals, chemicals, maritime and energy is the root rationale for conducting the event in Singapore’. He also urged the investors to invest in the available opportunity to accelerate India’s success and be associated with its 125 year old Hydrocarbon Industry.
As part of the interactive meet at Singapore, there were multiple presentations with regards to Ease of Doing Business in India as well as on details of the new bid round.
Mr. Atanu Chakraborty, Director General, DGH gave a detailed presentation on the exploration and production regime in India, attractive features of the bid round, bid qualifying criteria and parameters. He highlighted the benefits of the transparent HELP policy and also discussed the success of the new bid round in terms of participation and media coverage at earlier events.
Mr. Dharmendra Pradhan, Minister, MoPNG urged participants to invest in the discovered small fields and join hands to accelerate India’s success and become the driving factors for global growth.
The Indian Government delegation also conducted a roundtable interaction with industry players to discuss aspects related to the bid round. Later, the Minister, MoPNG also conducted one on one interactions with key industry players.