News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 17 years ago
Rediff.com  » Business » Largest auction of oil blocks soon

Largest auction of oil blocks soon

By Rakteem Katakey in New Delhi
February 10, 2007 12:50 IST
Get Rediff News in your Inbox:

After awarding oil and gas blocks under NELP-VI, the government is now turning its focus to the seventh round of the New Exploration and Licensing Policy (NELP-VII).

The next round, scheduled to occur by mid-April, is likely to be the largest auction of oil and gas exploration blocks.

Besides, the government is considering carving out blocks in states that were not present in NELP-VI.

"Around 70-80 blocks are likely to be put on the block," said Director General of Hydrocarbons (DGH) VK Sibal,  adding that the NELP-VII roadmap would be decided in a month's time. The DGH is the upstream regulator.

"The North-East will be a major focus area. Blocks in Arunachal Pradesh, Nagaland and Tripura could be offered in NELP-VII," said an official in the Ministry of Petroleum and Natural Gas. In the sixth round, only Assam and Mizoram were on the exploration map.

During a press briefing after the Cabinet cleared the award of 52 blocks under NELP-VI, Petroleum Secretary MS Srinivasan said blocks might  be carved out in Jammu and Kashmir as well.

However, the oil ministry official said Jammu and Kashmir might not figure in the next round of auction since the area continued to be sensitive. "But the case of the North-East is different, though there is strife there as well," he said.

The proposed gas pipeline from Myanmar through the North-East could leverage the allocation of blocks in the region," the official said.

India is working to secure gas from Myanmar via a $3 billion pipeline through the North-East. "Possible discoveries from blocks in the North-East could use the pipeline for gas evacuation," the official said.

In fact, the Arunachal Pradesh government has written to the petroleum ministry to demarcate exploration blocks in the state under the NELP-VII auctions.

"The state is surrounded by proven oil reserves in Assam, besides oil seepage into areas in Arunachal Pradesh," the state government has told the oil ministry.

Oil India, GeoEnpro Petroleum, Canoro Resources and Geopetrol International are currently drilling for oil in Arunachal Pradesh.
Get Rediff News in your Inbox:
Rakteem Katakey in New Delhi
Source: source
 

Moneywiz Live!