Regulations
69 small oil, gas blocks to be auctioned under revenue-sharing
For the first time, the Indian government will soon begin the process for auction of 69 small and marginal oil and gas fields on a new revenue sharing model, where bidders will quote the revenue they will share with the government at both low and high ends of the price and production band.
 
An official source told IANS here that the change in model is designed to help keep the government share in cases of windfall from both steep rise in prices as well as quantum jump in production.
 
The new revenue sharing model will replace the controversial production sharing contracts (PSCs) - by which oil and gas blocks are awarded to those firms which show they will do maximum work on a block - that has governed the bidding under the earlier nine New Exploration Licensing Policy (NELP) rounds.
 
The PSC regime, which allows operators to recover all investments made from sale of oil and gas before profits are shared with the government, was criticised by India's official auditor, who said it encouraged companies to keep inflating costs - "gold plating" - so as to postpone giving higher share of profits.
 
The source said of the 69 fields of state-run explorers of Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) which are to be auctioned, 27 are in Mumbai offshore while another 15 are in the Krishna Godavari (KG) basin. On offer are also 10 discoveries in the Assam Shelf.
 
However clubbing together of adjacent fields has brought down the number to be auctioned to 48, while the final number on offer may be still lower, the source added.
 
ONGC and Oil India surrendered 63 and six oil and gas fields, respectively, which they found uneconomical to develop in view of small reserve size and high economic cost.
 
Cumulatively the surrendered fields hold about 50.8 million tons of oil and 53.45 billion cubic meters of gas, the source added. The biggest discovery is D-18 in the Mumbai offshore that holds 14.78 million tons of oil reserves.
 
Earlier this month, the union cabinet approved the landmark change in India's hydrocarbons exploration regime.
 
Speaking to reporters after the cabinet meeting, Petroleum Minister Dharmendra Pradhan said that companies offering the maximum revenue share or percentage of oil and gas to the government, and committing to do more work, will win the field.
 
Stressing that with this move, producers will be spared day-to-day government interference, he said the government was unlocking 89 million tonnes of untapped hydrocarbon reserves worth Rs.70,000 crore.
 
Among the gas discoveries, the largest is ONGC's B-9 find in the offshore Kutch basin that has in-place reserves of 14.67 bcm.
 
The government approval of the marginal fields policy proposing a revenue sharing mechanism and market prices for output, would shift the key risks to developers, India Ratings and Research (Ind Ra) said in a report earlier this month.
 
Noting developers will need to consider an overall exploration, development and production cost along with volume and price estimates, as these would be the key variables for ensuring a reasonable internal rate of return on the projects," it said the older methodology "outlined in PSC meant lower risks for developers as it allowed them to first recover the costs incurred, followed by the sharing of profits with the government."

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Dr. Reddy's signs multimillion dollar deal with Hatchtech
Pharma major Dr. Reddy's Laboratories on Monday announced the signing of a multi-million dollar commercialisation deal with Hatchtech, an Australian pharmaceutical company developing an anti-headlice Xeglyze lotion.
 
The exclusive rights for this product are applicable for the US, Canada, India, Russia and the CIS, Australia, New Zealand and Venezuela.
 
Hatchtech also announced that it will be filing its New Drug Application for Xeglyze with the US Food and Drug Administration (FDA).
 
If approved, the product will be marketed in the US by Promius Pharma, a wholly-owned specialty company of Dr. Reddy's.
 
As part of the agreement, Dr. Reddy's will pay Hatchtech an upfront amount of $10 million, up to $50 million based on pre commercialisation milestones and an undisclosed amount based on post commercialization milestones, linked to achievement of annual net sales targets, said a statement by Hyderabad-based firm.
 
Hatchtech last year announced positive results from its two pivotal Phase 3 clinical studies evaluating Xeglyze lotion as a potential treatment for head lice infestation.
 
The active drug substance was developed in collaboration with Dr. Reddy's Custom Pharmaceutical Services (CPS) business unit.

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Fake Twitter Account creates mischief for Arun Shourie
Arun Shourie, who doesn’t even use a Twitter account, is the latest to become the victim of a fake account on the social media site
 
Twitter is abuzz with allegedly tweets of renowned editor and former Union Minister Arun Shourie, which apparently criticises the Bharatiya Janata Party (BJP).  The problem with fake twitter handles was exacerbated by the tweets being published by Rediff.
 
Mr Shourie told Moneylife that he had repeatedly said that he has no Twitter account. “I do not even understand this medium and I am tired of denying this,” he said. 
 
“Furthermore, I have not made any statements against the BJP as has been alleged in those tweets. I got to know of it after receiving 10 to 15 emails from friends asking me about these comments,” Mr Shourie, who was a minister in the Atal Bihari Vajpayee government, said. 
 
We learn that Mr Shourie has been targeted because of mischievous and false tweets from the fake Twitter account even in the past.  However, attempts to complain to Twitter elicited the answer that parody accounts are permitted by the company. 
 
Here are the tweets that are false…
 
This is the handle
 
After an uproar on social media, Rediff.com has removed the news report from its site.
 
The fake account of Mr Shourie clearly says, 'PARODY ACCOUNT", which leaves one wondering, how can a somebody use the content and attribute it to a well known person, who does not even have a Twitter account.
 
After an uproar on social media, Rediff.com has removed the news report from its site.

 

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COMMENTS

N.Paramasivam

1 year ago

Of late, even Rediff.com has become unreliable. The questain before us is "who can curtail, unruly Media?" Whether Citizen has a right, to know correct news? Whether Juduciary can help ordinary citizen in this matter OR it will help only bigwigs like Teesta or Raja Or Maran or Memon or Bhushans or Sibals? Or Govt just express its helplessness to do anything? Citizen of India, to be left alone, to get his own conclusions, daily! What kind of mockery of democracy?

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