Lukewarm response to NELP VIII

The Government said that it has received 76 bids for 36 blocks in an auction of oil and gas fields under the NELP VIII. The Centre had offered a total of 70 oil and gas exploration blocks. No bids were received in respect of the 16 deep water blocks, 15 shallow water blocks and 3 on-land blocks. Of the 24 deep water blocks on offer, bids were received only for eight, D.N. Narasimha Raju, Joint Secretary - Exploration in the Petroleum Ministry told reporters in New Delhi. The 13 shallow water blocks received bids while 10 small onland blocks got 37 bids while 5 larger onland blocks got 10 bids, he added.

Reliance Industries Ltd. (RIL) abstained from bidding for the 70 exploration blocks under the eighth round of auction under the NELP, companies such as BHP Billiton, BG and Cairn Energy were the only notable companies besides local giants like ONGC. There were 26 bids for 8 coal bed methane (CBM) blocks, said Raju. The Centre had offered 10 CBM blocks under the fourth round of the auction, said the joint secretary for exploration in the Petroleum Ministry. RIL bid for one CBM block.

The Government had launched the eighth bid round of New Exploration Licensing Policy (NELP VIII) and fourth bid round of Coal Bed Methane Policy (CBM IV) on April 9. It had offered the highest number of exploration blocks ever i.e. 70 blocks. The offered blocks included 24 deepwater blocks, 28 shallow water blocks, 8 onland blocks and 10 Type-S blocks. The Government had also offered 10 blocks under CBM IV.

The response of the E&P industry has been encouraging in the context of the global financial situation and responses to similar offers in many other countries, the Petroleum Ministry said in a statement. The data packages were purchased by 36 companies, including a large number of non-E&P companies, it added. A total of 62 companies, comprising 10 foreign and 52 Indian bid either on their own or as part of consortia. The Government said that 36 new companies bid either on their own or in consortium.

In respect of 8 deep water blocks, single bids were received from ONGC (6 blocks), BG Consortium (1 block) and Cairn Energy India Ltd. Consortium (1 block). Evaluation of the bids received under NELP VIII and CBM IV will be undertaken by the Government and the blocks are expected to be awarded within three months. The entire process, including signing of contracts is expected to be completed in four months.