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Auction of Marginal Oil and Gas Fields May Begin in February

The much-awaited auction of 69 marginal oil and gas fields, which would usher in  the revenue-sharing model of contracts, is likely to commence in February.

Confirming the contours of the  new contract are being finalised, a senior petroleum ministry official told FE, “The exact date of auction would be decided at the highest level of government.” He added that whether all the 69 fields — with combined proved reserves of 88 million tonne of oil equivalent valued at around Rs 77,000 crore at current prices — would be put under hammer in one go or in batches is yet to be decided.

In September, in a bid to revive investments in the hydrocarbon sector, the Cabinet Committee on Economic Affairs (CCEA) decided to shift to revenue sharing model for contracts instead of the current system of cost-recovery while auctioning the marginal oil and gas fields.

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