Govt signs contracts for oil exploration

Govt signs contracts for oil exploration

New Delhi, Apr 12: The Government on Wednesday signed production-sharing contracts for 22 oil blocks under its new exploration licensing policy. "We are signing production-sharing contracts for 22 blocks under the new exploration licencing policy, comprising seven deep water blocks, 14 shallow water blocks and one onland block," Petroleum Minister Ram Naik said just before the contracts were signed.

He said the 22 blocks comprise seven deep water blocks, 14 shallow water blocks and one onland block. "The deep water blocks have been offered for the first time, opening up new vistas for exploration in the country," he said.

Production-sharing contracts for three blocks from the earlier exploration round were also signed. Contracts for two of these blocks were signed with aconsortium of the Gujarat State Petroleum Corporation Ltd, Hindustan Oil Exploration Ltd and ONGC and one block with a consortium of Reliance Industries and Oil India Ltd.

Naik said the finalisation of contracts had been done in just three months from the time the blocks were awarded in January this year. Naik said the next round of the country's oil exploration licensing policy would be announced in the third quarter of 2000.

"The next round, NELP-II (New Exploration Licensing Policy), is likely to be announced in the third quarter of this year," he told a news conference. He did not say how many blocks were on offer in the new round. "We want to evaluate the experience gained in the first round of NELP before going into the next round... ultimately our aim is to move towards some kind of open acreage system." Naik said the governmment will invite bids for coal bed methane exploration in the country in June and July.