Intro4u2u

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The Indian government awarded 44 oil and gas exploration blocks Thursday, with the maximum going to ONGC and its partners and first timers BHP Billiton-GVK Power, to attract US$1.5 billion investment in an attempt to cut reliance on imported energy.

Of the 45 blocks that received bids in the seventh round of auction under New Exploration Licensing Policy, the Cabinet Committee on Economic Affairs (CCEA) did not award a deepwater block in Mumbai basin to Cairn Energy India as it found the low bid by the sole bidder “detrimental to the government’s interest in future in terms of profit petroleum.”

Minister of State in Prime Minister’s Office Prithviraj Chauhan, briefing reporters on CCEA decision, said the production sharing contracts (PSCs) for the 44 block would be signed in a month.

A total of 57 blocks were offered in the auction but bids were received only for 45, with about US$1.49 billion minimum investment committed in exploration spend, Petroleum Secretary R S Pandey said.

ONGC and partners bagged the maximum number of 20 oil and gas exploration blocks offered by India in its largest ever international bid round that closed on June 30. First timers BHP Billiton and GVK Power emerged winners in seven deepsea blocks.

Reliance Industries forged an alliance with British Petroleum Plc but could manage only one Krishna-Godavari basin block.

Pandey said the government was considering bringing a next edition of bid round, NELP-VIII in February 2009. “Blocks are under finalisation and we hope to come out with NELP-VIII in February.”

Next acreage auction in Feb: Oil secy

The Indian government hopes to make its next offering of acreages for oil and gas prospecting in February, a top petroleum ministry official told TOI on Thursday after the Cabinet approved award of 44 concessions to winning bidders of the seventh round of exploration blocks’ auction.

“It is a big day for us (the government). Award of so many blocks have been cleared. The formal contracts can now be signed… within a month. It also now allows us to start work on the next round of acreage auctions… hopefully by February. The blocks are being carved and can be finalised,” petroleum secretary R S Pandey said.

The awarded exploration blocks envisage investments of at least $1.5 billion. While clearing these blocks, the Cabinet withheld the award of a deepwater block in Mumbai basin to Cairn Energy India as it found the low bid by the lone bidder “detrimental to the government’s interest in future in terms of profit petroleum”.

Among the awarded blocks, the maximum number was bagged by state-run ONGC and its partners and first-timers BHP Billiton-GVK Power. A total of 57 blocks were offered in the auction but bids were received only for 45. Of the 57 areas offered in NELP-VII, seven deepsea, two shallow water and three onland blocks did not receive any bid.

ONGC and partners bagged the maximum number of 20 oil and gas exploration blocks offered by India in its largest ever international bid round that closed on June 30. First timers BHP Billiton and GVK Power emerged winners in seven deepsea blocks. Reliance Industries forged an alliance with British Petroleum but could manage only one Krishna-Godavari basin block.

The Phase I investment commitment includes $321.15 million for exploration in deepsea, $598.255 million for exploration in shallow waters and $572.75 million for onland blocks, officials said. Besides seismic surveys, 141 exploration wells have been committed in the mandatory Phase I by the winning firms.