Cos sign contracts for oil, gas exploration at 44 blocks

Oil and Natural Gas Corp (ONGC), BHP-Billiton-GVK Power combine and the Reliance Industries-BP Plc joint venture were among the firms that today signed contracts for exploring for oil and gas in 44 areas, committing $1.5 billion in investment. 

Production Sharing Contracts (PSCs) for the exploration blocks awarded under the seventh bid round of New Exploration Licensing Policy (NELP) were signed at a ceremony here today.

A total of 57 blocks were offered in the auction but bids were received only for 45, with about $1.49 billion minimum investment committed towards exploration spend.

Cairn Energy's bid for a Mumbai basin deepwater block was, however, rejected.

Also read:- 8th round of bidding for oil & gas blocks before March 09

ONGC and partners signed PSCs for the maximum number of 20 oil and gas exploration blocks they won in India's largest ever international bid round that closed on June 30.

First- timers BHP Billiton and GVK Power inked agreements for seven deepsea blocks.

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

Of the 57 areas offered in NELP-VII, seven deepsea, two shallow water and three onland blocks did not receive any bid.

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 firms that signed the PSCs today.

 Seven of the 12 deepwater blocks went to the consortium of BHP Billiton and GVK Oil and Gas.

Two blocks went to ONGC-GSPC consortia, while one each went to Reliance Industries-British Petroleum JV and ONGC-Oil India consortia.

Of the shallow water blocks, the consortia of ONGC, GSPC and HPCL-Mittal Energy won two Krishna Godavari basin blocks. ONGC-GSPC, Adani Welspun and Essar-Nobel were announced winners for one shallow water offshore block each.

ONGC and its partners were recommended for 11 onland blocks, while the consortia of OIL, HOEC and HPCL-Mittal Energy were recommended for a Rajasthan block.

Indian Oil Corp, Omkar Natural Resources, Vasundhara Resources, EnSearch Petroleum, GAIL and Quest Petroleum were other recommended winners for onland blocks.