The awarded fields make up 13 onshore contract areas spread across Gujarat, Andhra Pradesh, Tamil Nadu and Assam, the company said in a statement but did not identify the winners.
The winners were selected through an international competitive bidding for 17 onshore contract areas.
ONGC had invited bids for partnership to raise production from 64 marginal fields that were given to the company by the government without bidding. Being small in size, these fields are uneconomical for a large company for ONGC.
The government had originally planned to farm out these fields but later changed tack ans asked ONGC to induct partners with a view to ramp up production from these fields.
ONGC had invited bids in June last year. The fields are being given on revenue-sharing basis, with the revenue being shared on incremental production over and above the baseline production under business-as-usual (BAU). The selected contractors will not be required to reimburse any expenditure on the fields already incurred by ONGC.
These contracts will be for a period of 15 years, with an option to extend by five years.
Royalty rate will be reduced by 10% in case of additional production of natural gas over and above BAU scenario, according the statement ONGC has issues after inviting the bids
The contract will allow complete marketing and pricing freedom to sell oil and gas on an arm’s length basis.
