The Hindu : Fourth round of oil exploration launched

Online edition of India's National Newspaper
Friday, May 09, 2003

Business

Business

Fourth round of oil exploration launched

By Our Special Correspondent

NEW DELHI MAY 8. The Government today launched the fourth round of the new exploration licensing policy (NELP) by inviting bids for 24 oil and gas blocks. These include 12 in deep water areas, 11 in onland areas and one in shallow waters.

Disclosing this here today, the Union Petroleum Minister, Ram Naik, said there would be no restrictions on bidding by foreign companies even for the two oil and gas blocks in the Andaman and Nicobar Islands. He was replying to questions on whether companies from countries like China, Pakistan, Myanmar, Indonesia, Malaysia, Bangladesh and West Asia would be kept out of the bidding process for the blocks in this area which are being offered for the first time.

Giving details of the blocks being offered under NELP-IV, he said the 11 onland blocks were located in Assam, Bihar, Manipur, Nagaland, Rajasthan, Tripura (one each), Tamil Nadu (two) and Gujarat (three). The 12 deepwater blocks were located on the east coast (eight blocks) and west coast (four blocks). One shallow water block was located on the east coast.

Mr. Naik, who was addressing a press conference, said while the fiscal regime would be the same as in the previous rounds, the criteria for evaluation of bids had been changed slightly keeping in mind the ultra-modern technology needed for deepwater exploration.

The weightage for technical and financial capability for the deepwater blocks had been increased from 6 to 9 per cent and 4 to 6 per cent respectively. The work programme would now carry 55 per cent as against 60 per cent in the previous rounds.

In view of the recent large gas discoveries made in the Krishna-Godavari basin, he said a better response was expected as compared to previous rounds when most multinational oil majors had kept away from bidding.

Promotional roadshows will be held in Delhi on May 20, in London on June 5 and 6, in Calgary on June 9 and 10, in Houston on June 12 and 13 and in Perth on June 26 and 27.

Besides, data centres on the blocks on offer will be opened at Delhi, Houston and London.

Mr. Naik said the second round for coal bed methane (CBM) exploration blocks would also be launched on May 23. The Government has already awarded 70 oil and gas blocks under three rounds of NELP. A total of $1.05 billion investment had been committed in the three phases of exploration and production in the 23 blocks offered under NELP-III for which contracts were signed in February.

Printer friendly page
Send this article to Friends by E-Mail

Business