24 EXPLORATION BLOCKS OFFERED FOR GLOBAL BIDDING UNDER NELP-IV
Shri Ram Naik, Minister
of Petroleum & Natural Gas, launched the fourth round of bidding
under the New Exploration Licensing Policy (NELP-IV) on 8th
May at New Delhi. NELP-IV seeks to attract investments for the
exploration of oil and natural gas in the country. A total of
24 blocks – 11 onland blocks, 12 deepwater blocks and 1 shallow
water block are on offer under NELP-IV. The 11 onland blocks are
located in the States of Assam (1), Bihar (1), Gujarat (3), Manipur
(1), Nagaland (1), Rajasthan (1), Tamilnadu (2) and Tripura (1).
The 12 deepwater blocks are located on both the east coast ( 8
blocks) and on the west coast (4 blocks). One shallow water block
is located on the east coast. Shri Naik mentioned that two highly
prospective blocks in the Andaman deepwaters are also being offered
for the first time.
Shri Naik mentioned
that NELP-IV is being launched in the backdrop of the recent huge
deepwater gas discoveries made in the Krishna-Godavari basin.
In fact some of these have even been mentioned as being the largest
in the world during the year 2002. So far a total of 9 discoveries
with initial in place reserve estimates of over 300 million metric
tonnes of oil plus oil equivalent gas, have been made under NELP
during the short span of less than three years of exploration
effort. With the implementation of an aggressive exploration programme
under NELP, more and more discoveries are expected to be made
in the future.
Highlighting the
gains of NELP, Shri Naik recalled that a total of 0.71 million
sq. km. of sedimentary areas have been given in the first three
rounds of NELP. These constitute about 23% of the total sedimentary
area in the country. In fact, almost the entire shallow water
areas i.e. upto a water depth of 400 metres have since been licensed
for exploration. The area being offered under NELP-IV constitutes
about 7.6% of the total sedimentary areas. With NELP-IV, the total
area covered under NELP would be about 75% of the total area under
exploration.
Shri Naik informed
that to leverage the recent huge discoveries, which have significantly
changed perceptions about the geological prospectivity of India’s
sedimentary basins, Government of India would undertake an effective
promotional programme to highlight the attractive investment opportunities
available under NELP-IV to prospective investors. To advise the
Government to promote NELP-IV effectively, the consortium of IndigoPool
(a subsidiary of Schlumberger) - CWC Associates, U.K. has been
retained as the Marketing Consultant for NELP-IV. Promotional
roadshows have been planned at Delhi ( 20 May), London ( 5-6 June),
Calgary( 9-10 June), Houston (12-13 June) and Perth ( 26-27 june)
to bring home to global investors the advantages that India offers
under NELP as well as information on the exciting new finds in
recent times. Shri Naik will address all the roadshows.
In order to provide
access to information such as salient technical data on the blocks
on offer, the bid documents and highlights of NELP-IV, a special
web site has been created at www.IndigoPool.com.
This website can also be accessed from the Ministry’s official
website www.petroleum.nic.in
as well as www.dghindia.com
To facilitate data
viewing by Exploration and Production companies, the Government
of India would also be opening data centres at Delhi, Houston
and London. The data for NELP-IV can be viewed by companies at
any of these three centres and thereafter interested companies
may purchase data from DGH office at New Delhi.
The Model Production
Sharing Contract has been reviewed and finalised after getting
inputs from E&P companies and other stake holders. Keeping
in view the need to have technically and financially competent
companies specially for deep water blocks, the weightage for technical
and financial capability has been increased for the deep water
blocks.
The bid closing date
for NELP-IV is 30th September, 2003.
The launch of NELP-IV
is aimed as a part the overall effort of the Government of India
to enhance hydrocarbon security of the country through aggressive
exploration in the country, acquiring equity oil and gas abroad,
enhancing domestic production from existing fields by application
of improved oil recovery methods and exploring new sources of
hydrocarbons such as CBM. Significant progress has been made on
these fronts.
Shri Naik expressed
the hope that NELP-IV would attract a very good response from
E&P companies and investors and they would avail of the attractive
investment opportunity being offered through NELP-IV.
