Page 107 - DGH_Annual_Report

New Investment Opportunities in E&P Sector 107

6.7 DISCOVERED SMALL FIELD BID 6.7.1 Key Highlights of DSF Bid Round-II are
ROUND-III (2021) as outlined below:

Building on the success of DSF Bid Rounds I and The DSF-III round received an 107 bids
II, and recognizing the potential of untapped for 32 Contract Areas, with 27 companies
discoveries, the Government of India launched participating-23 of them private players.
DSF Bid Round III on June 10, 2021.
The round welcomed five new entrants,
In this round, Government offered 32 Contract including two foreign companies.
Areas with 75 discoveries across nine sedimentary A standout feature of DSF-III is that nearly
basins covering about 13,000 square kilometres 90% of the hydrocarbon resources offered
of area and having 232 Million Metric Tonnes were located in offshore areas. This marks
(O+OEG) of in-place reserves.
a strategic shift towards leveraging India’s
Following the evaluation, 31 Contract Areas blue economy potential.
were awarded, including 11 onland and 20
offshore blocks with 74 discoveries covering To enhance investor appeal, DSF-III
approximately 12,727 square kilometres of area introduced more competitive terms,
and having 230 Million Metric Tonnes (O+OEG) including the issuance of PML grant
of in-place reserves. letters for offshore blocks at the time of
contract signing, and incentives for early
The Revenue Sharing Contracts (RSCs) for 30 monetization of discoveries.
Contract Areas were signed on September 09, Recognizing the value of data in reducing
2022.
exploration risk, the round facilitated faster
During DSF Bid Round-III, additional provisions access to geological and geophysical data,
and incentives were introduced to encourage enabling bidders to make informed decisions
operators in oil and gas exploration and and streamline their project timelines.
production for early monetization. The major
revised provisions are tabulated below:

Table 6.4: DSF Previous vs Revised Provision

Feature Previous Provision Revised Provision

Biddable Weightage: Weightage:
Parameter
Biddable Work Program: 20% Biddable Work Program: 50%
Govt. Revenue Share: 80% Govt. Revenue Share: 50%

No HRP Ceiling HRP Upper Ceiling: 50%

Early No Incentive Incentivizing early commercial production
Production during development period

(Oil: Min of 5 US$/bbl and Quoted LRP)

(Gas: Min of 0.2 US$/MMBtu and Quoted LRP)

Liquidated High LD in case of failing to meet 75% reduction in LD amount
Damage (LD) Minimum Work Programme

Exit Option No Provision Option to exit without LD Payment in case of
delay in statutory clearances beyond 2 years