The Hindu Business Line : DG Hydrocarbons to stick to July 31 deadline for awards under NELP-V

THE Directorate-General of Hydrocarbons (DGH) is confident of meeting the deadline of July 31 for announcing the awards of the 20 blocks offered under the fifth tranche of the new exploration licensing policy (NELP).

Speaking to Business Line, the Director-General of Hydrocarbons, Mr V.K. Sibal, said: "The process of evaluation of the bids is under progress and we will stick to our deadline." The production sharing contracts with successful companies is likely to be signed by September 30.

The bids for NELP-V closed on May 31. NELP-V was launched on January 4 offering 20 blocks - six in deep waters, two in shallow waters and 12 onland blocks. The onland blocks are in Andhra Pradesh, Arunachal Pradesh, Assam, Gujarat, Maharashtra, Rajasthan, Tamil Nadu and Uttar Pradesh. Maharashtra was included for the first time for exploration under NELP-V.

By the bid closing date, a total 69 bids for 20 blocks (18 bids for deepwater blocks, seven for shallow water blocks and 44 bids for the onland blocks) were received. Based on the information recorded by the bidding companies, a total of 26 foreign companies and 21 Indian companies (eight PSUs and 13 private sector companies) have submitted their bids.

The Government has set up two inter-ministerial committees - one committee headed by the Minister for Petroleum and Natural Gas, Mr Mani Shankar Aiyar, and the other under the chairmanship of the Petroleum Secretary, Mr S.C. Tripathi, - for monitoring the NELP-V. The meeting of the inter-ministerial committee under the Minister to streamline operational procedures under the NELP-V contracts is expected to take place some time this month.

Meanwhile, the exploration and production companies have been making claims about the number of blocks being awarded to them. On whether these claims were valid, the DGH said, "not only the procedure adopted for awarding blocks under NELP-V has been very transparent, but the guidelines also have been very clear. Therefore, the companies are able to clearly evaluate themselves. However, the real picture will come only by the end of this month."

Further, the Government is in the process of streamlining the existing norms for market sensitive announcements made by the oil and gas companies. Besides, on the announcement regarding blocks, the recent past has seen a number of companies claiming to have struck substantial quantities of gas or oil. This is even while they are required to get a certification from the DGH.

Commenting on the issue, Mr Sibal, said: "All we are trying to see is that each stakeholder sticks to his commitment. We want to make the process investor friendly, so that an average investor knows the exact status of the find."

The policy has been already formulated by the DGH with participation from all stakeholders and submitted to the Government. The nod from Ministry of Petroleum and Natural Gas is expected soon. The new policy is expected to standardise the entire process, he said.

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