Current AffairsEconomics

Discovered Small Field (DSF) Bid Round-III.

Minister of Petroleum and Natural Gas launched the Discovered Small Field (DSF) Bid Round-III.

  • The government of India had launched Discovered Small Field (DSF) Policy in 2015 for awarding discovered acreages and monetize the unmonetized discoveries.
  • The DSF policy has multiple attractive features like revenue sharing contract model with a low regulatory burden, no minimum biddable work program, no prior technical qualification required, no upfront signature bonus, etc.
  • In DSF Round – I launched in 2016, 134 bids were submitted for 34 contract areas by 47 companies. 30 Revenue Sharing Contracts were signed.
  • In DSF Round – II launched in 2018, 145 bids were submitted for 24 contract areas.
  • 24 Revenue Sharing Contracts were signed.
  • Encouraged by the success of DSF bid rounds-I &II, the Government of India has extended the DSF Policy by launching DSF bid round-III.

 

The salient features of DSF policy are:

  • Revenue Sharing Model,
  • Single License for Conventional & Unconventional Hydrocarbons,
  • No upfront signature bonus,
  • Reduced Royalty rate in line with HELP,
  • no cess,
  • Full marketing and Pricing freedom for gas produced,
  • Exploration allowed during entire contract period, and
  • 100% participation from foreign companies/ joint ventures.
Tags: Current Affairs, Economics

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