Government to offer 80 oil blocks for exploration under NELP-VII in August

Our Economy Bureau
20 June 2007

"We are still finalising the number of on-land and offshore blocks. Most likely, it is going to be 50:50," V K Sibal, director-general of hydrocarbons said, adding that the blocks would mostly be off the western coast.

The proposed auction would be the largest single round under the NELP, which was launched in 1999. The ministry has so far awarded 162 oil and gas blocks in the previous six rounds.

Under NELP-VI, in February, the ministry awarded 52 blocks, of which 21 deep-water blocks were allotted to state-run Oil and Natural Gas Corporation (ONGC). The government is expected to collect nearly $12 billion from blocks auctioned under NELP-VI.

India, Asia's third-largest oil consumer, imports 70 percent of its crude. It is keen to tap any remaining domestic reservoirs to help offset its dependence on imports.

India, meanwhile, is planning to add energy to its basket of traded goods with East Asia and is seeking to develop the region as a market for auto fuels and as a source for gas and crude-oil supplies.

India's merchandise trade, traditionally focused on Europe and the US, is increasing with countries such as China, Singapore , Malaysia and Indonesia . Energy ties will help deepen the relations, foreign minister Pranab Mukherjee said.