Government signs Contracts for 52 NELP-VI exploration blocks

The Minister of Petroleum and Natural Gas Shri Murli Deora has informed that a total of 32 oil and gas discoveries have been made in India so far in the exploration blocks awarded in the 5 rounds under New Exploration Licensing Policy (NELP). Speaking at the Production Sharing Contract (PSC) signing for 52 blocks offered under the Sixth Round of NELP(NELP-VI), here today, Shri Deora said that oil and oil equivalent gas (O+OEG) of 400 million metric tonne(MMT) have been established with these discoveries.

Shri Deora also assured that the Government is fully committed for complete transparency and welcomed any suggestions in this regard. Referring to NELP-VI Round, he emphasised that it has been the most successful round. A total of 165 bids, highest ever were received for these 52 blocks under NELP-VI against 69 highest bids received in last round of NELP-V. A total of 310 data packages amounting to Rs. 78.60 crore were sold as against the previous best sale of Rs. 22.75 crore in NELP-V. Further, 20 new foreign companies out of 36 foreign companies submitted bids under NELP-VI. As many as 39 blocks attracted multiple bids with one block namely, CB-ONN-2004/3 receiving 10 bids. This round saw participation of 36 companies from 17 countries.

Shri Deora also said that NELP-VI will lead India into joining the league of nations which will have one of the most extensive deep sea exploration programme. One of the major achievements of NELP-VI Round has been receipt of bids for 21 deepwater blocks, and bids for all the 12 Frontier on-land blocks. This has by far been the highest offering of Frontier on-land blocks and the interest shown by E&P companies in undertaking exploration in these blocks shows the maturity of the Indian sedimentary basins. Exploration activity in these blocks is likely to enhance the understanding of the thrust belt of North Eastern States and Central India.

Speaking on the occasion the Minister of State for Petroleum & Natural Gas Shri Dinsha Patel emphasised the need for intensive exploration and production of hydrocarbon resources in the country. He said this is important for the country’s growth. Shri Patel underlined the significant progress made under the NELP by awarding over 160 exploration blocks in the six rounds so far. Petroleum Secretary Shri M.S. Srinivasan stressed that the best way for energy security is to look inward and explore the untapped hydrocarbon resources. He also underscored the transparency and the level playing field provided under NELP regime. He informed that the next round of bidding(NELP-VII) is expected to be announced by mid-April, 2007.

The entire bidding process, including bid evaluation, finalization of awards and signing of contracts for NELP-VI has taken a little over five months from the date of receipt of bids and the Government has adhered to the announced time frame of decision making.

Source : Press Information Bureau

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