ID :
74390
Sat, 08/08/2009 - 22:36
Auther :
Shortlink :
https://www.oananews.org//node/74390
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India relaunches largest auction of oil, gas areas
Mumbai, Aug 8 (PTI) India Saturday relaunched its largest
ever auction of oil and gas exploration areas, aiming to
attract USD 3-4 billion investment towards boosting energy
security.
Petroleum Minister Murli Deora kick-started the offer of
70 oil and gas exploration areas in the 8th edition of New
Exploration Licensing Policy (NELP) and 10 coal bed methane
(CBM) blocks with the first roadshow here.
"NELP can be portrayed as India's success story in our
endeavour to achieve self-sufficiency in hydrocarbons," he
said at the promotional roadshow.
Under NELP, 71 oil and gas discoveries have already been
made in 21 exploration blocks by accretion of in place
hydrocarbon reserves of more than 600 million tonnes of oil
equivalent, he said.
"Major natural gas production in KG basin commenced from
April. With this, the gas production in the country would be
doubled, and in monetary terms it would be about USD 42
billion."
Total committed investment in NELP rounds for exploration
so far is around USD 10 billion, out of which USD 5.3 billion
in exploration has been made. Further, USD 6.6 billion will be
invested towards development of the Exploration and Production
sector.
Deora said the last date of bidding for the nation's
largest ever auction of oil and gas blocks is October 12.
A revised timetable has been drawn after Finance Minister
Pranab Mukherjee extended the 7-year income-tax holiday to
natural gas production.
India had on April 9 launched the eighth round of auction
of blocks for exploration under NELP with August 10 being the
last date for bidding. But it was deferred over ambiguity on
the availability of tax holidays for natural gas.
After Mumbai, roadshows will be held in Houston (August
20-21), Calgary (August 24-25), London (September 8-9), Perth
(September 22) and Brisbane (September 24-25).
Data centres have been set up at oil regulator DGH's
office in Noida, on the outskirts of the national capital,
London, Calgary, Houston and Perth, he said.
The round is being relaunched after Mukherjee in his
Budget for 2009-10 said that seven years holiday from payment
of income tax on profits earned from production and sale of
natural gas would be available for blocks to be awarded
in NELP-VIII.
India is offering 24 deep-sea blocks, 28 shallow water
blocks and 18 onland blocks for bidding in NELP-VIII hoping to
attract USD 3 billion investment in exploration.
The 75 per cent import-dependent nation has also offered
for bidding 10 areas for extraction of gas from below the coal
fields or CBM.
The Government had launched NELP-VIII and CBM-IV on April
9 and bids were to close on August 10.
Fearing investor backlash on ambiguity over the tax
holiday for natural gas, the government had on April 17
deferred the promotional roadshows.
The Finance Ministry had in 2008-09 Budget scrapped the
seven-year tax holiday or exemption from payment of income-tax
on natural gas production.
Though oil and gas naturally occurred together and a
single well could be producing both, the incentive was
restricted only for crude oil production.
The move drew flak from oil majors who kept away from the
previous NELP-VII round that closed after the announcement.
Asia's third-largest energy consumer is aiming to cut oil
imports and has till now awarded 203 blocks in the previous
seven rounds with over USD 11 billion committed as exploration
spend.
Besides, 23 blocks have been awarded in the previous
three CBM rounds. More than six trillion cubic feet reserves
have already been established in four CBM blocks.
Since its advent in 1999, NELP has made 68 oil and gas
discoveries in Cambay onland, North East Coast and Krishna
Godavari deep-water areas totalling over 600 million tonnes of
reserves.
Worldwide spending on oil and gas exploration may drop 12
per cent in 2009 to USD 400 billion, Barclays Capital Research
has stated.
India had offered 57 blocks in NELP-7 last year and
awarded 44 to companies like BHP Billiton and Oil and Natural
Gas Corp (ONGC). In the first six rounds, 162 areas with an
investment commitment of USD 8.33 billion were awarded.
Of the total committed investment of USD 8.33 billion
received in the first six rounds of NELP, USD 3.887 billion
had already been spent by oil and gas companies till March
2007.
Of the USD 8.33 billion promised investment, the largest
commitment of USD 3.32 billion was received in NELP-6, where
52 out of 55 blocks on offer were grabbed. PTI KV
JVN
NNNN
ever auction of oil and gas exploration areas, aiming to
attract USD 3-4 billion investment towards boosting energy
security.
Petroleum Minister Murli Deora kick-started the offer of
70 oil and gas exploration areas in the 8th edition of New
Exploration Licensing Policy (NELP) and 10 coal bed methane
(CBM) blocks with the first roadshow here.
"NELP can be portrayed as India's success story in our
endeavour to achieve self-sufficiency in hydrocarbons," he
said at the promotional roadshow.
Under NELP, 71 oil and gas discoveries have already been
made in 21 exploration blocks by accretion of in place
hydrocarbon reserves of more than 600 million tonnes of oil
equivalent, he said.
"Major natural gas production in KG basin commenced from
April. With this, the gas production in the country would be
doubled, and in monetary terms it would be about USD 42
billion."
Total committed investment in NELP rounds for exploration
so far is around USD 10 billion, out of which USD 5.3 billion
in exploration has been made. Further, USD 6.6 billion will be
invested towards development of the Exploration and Production
sector.
Deora said the last date of bidding for the nation's
largest ever auction of oil and gas blocks is October 12.
A revised timetable has been drawn after Finance Minister
Pranab Mukherjee extended the 7-year income-tax holiday to
natural gas production.
India had on April 9 launched the eighth round of auction
of blocks for exploration under NELP with August 10 being the
last date for bidding. But it was deferred over ambiguity on
the availability of tax holidays for natural gas.
After Mumbai, roadshows will be held in Houston (August
20-21), Calgary (August 24-25), London (September 8-9), Perth
(September 22) and Brisbane (September 24-25).
Data centres have been set up at oil regulator DGH's
office in Noida, on the outskirts of the national capital,
London, Calgary, Houston and Perth, he said.
The round is being relaunched after Mukherjee in his
Budget for 2009-10 said that seven years holiday from payment
of income tax on profits earned from production and sale of
natural gas would be available for blocks to be awarded
in NELP-VIII.
India is offering 24 deep-sea blocks, 28 shallow water
blocks and 18 onland blocks for bidding in NELP-VIII hoping to
attract USD 3 billion investment in exploration.
The 75 per cent import-dependent nation has also offered
for bidding 10 areas for extraction of gas from below the coal
fields or CBM.
The Government had launched NELP-VIII and CBM-IV on April
9 and bids were to close on August 10.
Fearing investor backlash on ambiguity over the tax
holiday for natural gas, the government had on April 17
deferred the promotional roadshows.
The Finance Ministry had in 2008-09 Budget scrapped the
seven-year tax holiday or exemption from payment of income-tax
on natural gas production.
Though oil and gas naturally occurred together and a
single well could be producing both, the incentive was
restricted only for crude oil production.
The move drew flak from oil majors who kept away from the
previous NELP-VII round that closed after the announcement.
Asia's third-largest energy consumer is aiming to cut oil
imports and has till now awarded 203 blocks in the previous
seven rounds with over USD 11 billion committed as exploration
spend.
Besides, 23 blocks have been awarded in the previous
three CBM rounds. More than six trillion cubic feet reserves
have already been established in four CBM blocks.
Since its advent in 1999, NELP has made 68 oil and gas
discoveries in Cambay onland, North East Coast and Krishna
Godavari deep-water areas totalling over 600 million tonnes of
reserves.
Worldwide spending on oil and gas exploration may drop 12
per cent in 2009 to USD 400 billion, Barclays Capital Research
has stated.
India had offered 57 blocks in NELP-7 last year and
awarded 44 to companies like BHP Billiton and Oil and Natural
Gas Corp (ONGC). In the first six rounds, 162 areas with an
investment commitment of USD 8.33 billion were awarded.
Of the total committed investment of USD 8.33 billion
received in the first six rounds of NELP, USD 3.887 billion
had already been spent by oil and gas companies till March
2007.
Of the USD 8.33 billion promised investment, the largest
commitment of USD 3.32 billion was received in NELP-6, where
52 out of 55 blocks on offer were grabbed. PTI KV
JVN
NNNN
