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Contract awarded for 31 Tamil Nadu oil fields

Contract awarded for 31 Tamil Nadu oil fields

The Cabinet Committee on Economic Affairs (CCEA) has approved the award of 31 contract areas as part of the Discovered Small Field (DSF) Bid Round 2016. These fields were offered under the new policy for small fields known as Discovered Small Field (DSF) policy, 2015, which offers improved fiscal terms with the aim to enhance oil & gas production and reducing import dependency of the country.

These fields were offered through an open and transparent international competitive bidding process. The bidding was open to all, including oil companies (i.e., ONGC & OIL) and other Central and state PSUs.

Currently, there are three operational Exploration Blocks (Approximately 1,461 sq km) under the Production Sharing Contract System in Tamil Nadu where hydrocarbon exploration is going on. Under the nomination regime, 31 mining leases (approximately 3,500 sq km) have been granted in the state from where 600 tonnes of oil and 30 lakh cubic metres of natural gas are produced per day.

Till date, more than 700 wells have been drilled for extraction of oil & gas in the Tamil Nadu.

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