NTPC bags an oil block

Decks have been cleared for National Thermal Power Corp's foray in oil exploration sector with the government awarding one block to the power major under the fifth round of New Exploration Licensing Policy.

The government has approved award of block 'AA-ONN-2003/2' to the consortium of NTPC-Canoro Resources Ltd-Geo Petrol International, the company informed the Bombay Stock Exchange.

The onland block 'AA-ONN-2003/2', which has an area of about 295 square km in Arunachal Pradesh of the Assam-Arakan region, was one of the two blocks which were not awarded earlier this year along with the rest 18 under the NELP-V.

The approval is subject to acceptance of terms and conditions in the notice inviting offers and signing of the production sharing contract for the block, it said.

This is the first ever block where NTPC would start exploration. Getting into oil and gas exploration is part of its strategy to secure fuel supplies for its power plants.

NTPC, the country's largest power producer, runs 20 thermal power stations, including seven gas-based ones. Though it has no experience in oil exploration, its consortium partners have some expertise.

Canoro Resources is an upstream oil and gas company and operates the Amguri development block, while GeoPetrol has interests in Cambay and Krishna-Godavari basins.