NELP 10th round oil & gas block auctions likely in Jan
28 Sept 2013 4:25 AM IST
India is likely to launch the 10th round of auction of oil and gas blocks in January as the country looks to attract foreign investors to boost domestic production.
'We would like to go for it (the 10th round of new exploration licensing policy or NELP),' Oil Minister M Veerappa Moily told reporters on sidelines of Global HSE Conference organised by Cairn India Ltd.
The Oil Ministry is looking at offering as many as 68 blocks or areas for exploration of oil and gas in the 10th round of New Exploration Licensing Policy. The round is likely to be announced at the Petrotech Conference.
'Having learnt some lesson from 1 to 9 rounds (of NELP), 10th round will be a perfect round,' the minister said, adding hindrances faced in the previous rounds would be removed.
'NELP-10 will be free from obstructions facing exploration and production,' he said without elaborating.
This will be the second highest offering of blocks since the advent of NELP 1999, official sources said here. Of the blocks being considered for offering in NELP-X, 25 are deep water, 20 shallow water and 23 onland blocks.
NELP-X is likely to be held on new terms wherein a bidder shall be asked to quote the amount of oil or gas output it is willing to offer to the government from the first day of production.
The terms being considered for NELP-X are suggested by PMEAC chairman C Rangrajan panel. The company offering the highest share of oil or gas produced from the field would get the block. Currently, oil companies are allowed to first recover the entire cost of exploration and production and only then share the profit with the government.
This approach had been criticised by the Comptroller and Auditor General of India (CAG) as it was felt it encouraged companies to delay government getting larger share by increasing capex.
'We would like to go for it (the 10th round of new exploration licensing policy or NELP),' Oil Minister M Veerappa Moily told reporters on sidelines of Global HSE Conference organised by Cairn India Ltd.
The Oil Ministry is looking at offering as many as 68 blocks or areas for exploration of oil and gas in the 10th round of New Exploration Licensing Policy. The round is likely to be announced at the Petrotech Conference.
'Having learnt some lesson from 1 to 9 rounds (of NELP), 10th round will be a perfect round,' the minister said, adding hindrances faced in the previous rounds would be removed.
'NELP-10 will be free from obstructions facing exploration and production,' he said without elaborating.
This will be the second highest offering of blocks since the advent of NELP 1999, official sources said here. Of the blocks being considered for offering in NELP-X, 25 are deep water, 20 shallow water and 23 onland blocks.
NELP-X is likely to be held on new terms wherein a bidder shall be asked to quote the amount of oil or gas output it is willing to offer to the government from the first day of production.
The terms being considered for NELP-X are suggested by PMEAC chairman C Rangrajan panel. The company offering the highest share of oil or gas produced from the field would get the block. Currently, oil companies are allowed to first recover the entire cost of exploration and production and only then share the profit with the government.
This approach had been criticised by the Comptroller and Auditor General of India (CAG) as it was felt it encouraged companies to delay government getting larger share by increasing capex.
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