Indian Government approves award of 44 blocks under NELP-VII

Government of India had launched the seventh round of New Exploration Licensing Policy (NELP-VII) on 13.12.2007.

The bids were opened on 30th June, 2008 wherein 181 bids were received from public sector and private/foreign companies for 45 blocks (12 deep water blocks, 7 shallow water blocks and 26 on-land blocks).

A total of 95 companies including 74 Indian Companies and 21 foreign companies had submitted bids for 45 blocks. The Bids were evaluated based on Notice Inviting Offer (NIO), Bid Evaluation Criteria (BEC), assumption and clarifications made known to all the prospective bidders.

An Empowered Committee of Secretaries (ECS) considered the bid evaluation on 30.09.2008 and made recommendations to CCEA for award of blocks.

CCEA in its meeting held on 20.11.2008 considered the recommendations of ECS and follow-up action taken by MOP&NG and approved the award of 44 blocks to the first ranked/ sole bidder.

CCEA decided not to award block MB-DWN-2005/8.

CCEA to authorize Ministry Of Petroleum & Natural Gas to incorporate suitable provisions with legal vetting by Department of Legal Affairs(DLA) in the award letter as well as in the Production Sharing Contracts (PSCs) in the following blocks:

(a) All nine Type-S blocks and Five Mumbai Basin Type-A Deepwater blocks viz., MB-DWN-2005/2,4,5,7&9.

(b) All 44 blocks : the clarification issued by Ministry Of Petroleum & Natural Gas on 27.06.08 regarding tax holiday on commercial production of Natural Gas be inserted in PSCs.

The Production sharing contracts (PSCs) for 44 blocks under NELP -VII are likely to be signed within a month. Total investment commitment for phase-I of Exploration for these 44 blocks is about US$ 1.5 billion. It is expected that the award of the blocks under NELP-VII will result in more discoveries, further investments in development of oil fields leading to higher reserves accretion and eventually, production of oil and gas.

Source : Press Information Bureau

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