The bidding process for seven oil blocks in the northern region of the country saw only eight bids come in before the closing bell of the bidding process was rung. These blocks are located in Rajasthan, Madhya Pradesh, and the West Bengal region in the country.
The Director-General of Hydrocarbons (DGH) in a statement said that the state-owned Oil & Natural Gas Corporation (ONGC) bid for all seven blocks while Oil India Limited (OIL) bid for one block before the closing of the allotted time.
These blocks are on offer on revamped license terms and the renegotiations of the licenses and the rules and regulations surrounding it along with the oil production capacity of these oil wells have a tenacity to bleed the barrel dry, which is one of the forefront reasons why no other player was interested in bidding for these blocks in the first phase.
The slowness in the economy has been the frontrunner in closing shops and wrapping well-established players in the sectors based on a surge in the bad debt incurred by the banks on the back of a tumultuous economic downshift.
Other players like Reliance Industries Limited and Adani group stayed away from the bidding as the cash cows have left the shelter in these oil blocks, only one block in Rajasthan saw two bids making it a competitive oil well whilst others were solely bided by ONGC as it’s a state-owned entity and on the back of a severe economic slowdown, the onus of replenishing credit and money flow in the economy is on the government.
Tags : DGH, ONGC,