GUWAHATI: Union minister of state for petroleum and natural gas, Dharmendra Pradhan said that Assamoil economy is set to get a boost once state’s 12 discovered small fields (DSF) worth Rs 17,000 Crore starts getting investments for oil exploration.
“We are going to fulfill Assam’s aspiration by looking beyond oil tax and royalty. The state has been giving the country oil for all these years. Now it is time for the oil companies do something for the state’s economy,” Pradhan said here.
DSF are those oil fields which were discovered but not exploited for hydrocarbon exploration for last 40 years ago because oil companies did not think commercially viable for small size of the oil fields. There are 67 DSF across the country, including 12 in Assam. With the Narendra Modi government setting the target of 10 % reduction in oil import by 2022, the centre last year approved the DSF policy to increase domestic production. The 12 DSF in the state has the hydrocarbon potential of 21 million metric ton.
At the DSF bid round 2016 roadshow here on Saturday, Pradhan said that the 12 DSF in the state will require a total capital expenditure of Rs 4000 Crore to transforms this fields into a commercially viable exploration.
“Once the investment of Rs 4000 Crore comes from the investors to 12 DSF, it will have a long term positive impact on state’s economy. That is why we have organized the roadshow in Guwahati so that local entrepreneurs and even startup companies can bid for oil production from state’s DSF. We have simplified the bidding process so that even companies without any previous experience in oil sector can also take part,” Pradhan said.
Over 200 representatives from government and non-government hydrocarbon companies took part in the roadshow. The bidding for all the 67 DSF will be on July 15, while the bidding process will complete by end of this year.
The union minister said production is expected to start from January next year.