The bids were offered to new players to do exploration only where discovery of reserves had already been made, he said.
He was in the city to participate in the investor meet organised by the DGH for the DSF Bid Round-II.
The Cabinet today approved pricing and marketing freedom to producers of natural gas from coal seams (CBM) and also allowed them to sell the fuel to affiliates.
State-owned Oil and Natural Gas Corp is awaiting nod of upstream regulator DGH to commence investing USD 5.07 billion in bringing to production oil and gas discoveries in its Bay of Bengal block KG-D5.
India's first oil and gas fields' auction in over 4 years is in deep trouble. CNBC-TV18 reports initial bidding has not met government expectations despite several exploration incentives and market-linked pricing, forcing an extension in auction deadline.
The exploration of KG-D6 block by Reliance Industries (RIL) had led to migration of gas from the adjacent KGDWN-98/2 block operated by ONGC, which led to a loss to the exchequer, a report by the Justice AP Shah panel submitted to the government concluded yesterday.
Speaking to CNBC-TV18, Adi Godrej, Chairman of the Group said that the company is happy to increase its stake in the subsidiary and that the operations from sales in Kenya are high.
Recently, a Committee headed by the Directorate General of Hydrocarbons (DGH) on policy for grant of extension to the Production Sharing Contracts (PSC) for small, medium-sized and discovered fields that were awarded to private firms in 1990s, has recommended a uniform 10-year extension but on revised terms and conditions.
Reliance Industries (RIL) has decided to relinquish two gas discoveries off the east coast and opted to carry out government prescribed confirmation tests to retain three other finds.
In a bid to adopt a more investor-friendly approach, the Oil Ministry wants conciliation not litigation as the first step to resolve disputes.
While RIL began oil production from its KG-D6 block in September 2008 and gas output in April 2009, ONGC, which has made 11 oil and gas discoveries in KG-D5 block, still is at least four years away from first gas.
Oil and Natural Gas Corp (ONGC) had in 2007 farmed out 15 percent stake in the KG-DWN-98/2 block, which sits next to Reliance Industries' KG-D6 block, to Brazil's state-controlled oil firm Petroleo Brasileiro SA or Petrobras. Another 10 percent interest was given to Norway's Norsk Hydro (now Statoil Hydro).
RIL had found gas in the Dhirubhai-1 and 3 wells in October 2002 and were declared commercially viable finds between April 2003 and March 2004.
With India slated to become the third largest energy consumer in the world by 2020, the newly appointed DGH B N Talukdar has called for creating a more investment friendly environment to produce more oil and gas in the country.
Sources with direct knowledge of the development said the panel, in Chapter 2 of its report, recommended continuation of the present production sharing contract (PSC) framework for the oil and gas sector, which allows for cost recovery by exploration and production (E&P) companies before they pay the government its share.
The Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Manmohan Singh, allowed Coal India (CIL), the world's largest coal miner, to explore and produce coal-bed methane (CBM) in its existing mines, Coal Minister Sriprakash Jaiswal said.
RIL as per contractual requirement of retaining only the area where discoveries have been made, had offered to give up or relinquish 5,367 square kilometers out of the total 7,645 sq km area in the block.
The appointment of an independent international expert, which RIL-BP have been pressing for several months now, would establish who is right and who is wrong.
Reliance Industries has slammed the DGH‘s move to snatch 86 percent of its KG-D6 block area, including eight gas discoveries worth USD 10 billion, as â€œarbitraryâ€ and said the oil regulator was responsible for the delay in developing the finds.
Oil regulator DGH has recommended an additional penalty of USD 781 million on Reliance Industries, taking the total fine on the company for producing less than projected natural gas from KG-D6 fields to USD 1.786 billion.
The Directorate General of Hydrocarbons (DGH) has refused to approve Reliance Industries' USD 3.5 billion plan for developing gas discoveries in block NEC-25.
In a relief to Reliance Industries, Oil Minister M Veerappa Moily has indicated that he may not fully accept DGH's recommendation for taking away 86 percent of the company's KG-D6 gas block area.
Confederation of Indian Industry (CII) has recommended that the coal sector be deregulated for competitive resource allocation. Private participation in the mining sector, particularly coal, is urgently needed, it said.
Oil regulator DGH wants Reliance Industries to give up 86 percent of its KG-D6 gas block area, including eight gas discoveries worth at least $5 billion, saying that the firm has overshot the time allotted to it for developing the area.
Ten months after a bureaucrat was appointed as DGH, the Oil Ministry has begun looking for a technocrat to the head the upstream oil regulatory body.