The Hindu Business Line : ONGC wants to pitch again for KG basin blocks

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New Delhi March 4 ONGC has decided to make another pitch for three nomination blocks in the highly prospective Krishna-Godavari (KG) Basin.

Consequently, it has decided to approach the Petroleum Ministry to reconsider its decision to re-offer the three deepwater blocks held by the exploration major in the future licensing rounds.

The Ministry's viewpoint is that the exploratory licences have expired or are near expiry for these blocks.

Sources told Business Line that the company wants to be allowed to pursue further the leads it had found in these three blocks that were allotted to it on nomination basis.

The company is looking at a 20-month extension to probe the leads in these blocks.

In other words, it wants to seek compensation for time lost because of a Government decision to rope in private oil majors with technical expertise for the development of these blocks.

Besides, when the company was asked to hunt for a suitable partner, it was also proposed that it would be given an additional 3-4 years.

In April 2000, ONGC was given NELP terms to enable it to seek strategic alliances to explore and develop six deep-sea blocks, which includes three blocks in KG Basin - KG-OS-DW, KG-OS-DW-Extn and KG-OS-DW-III.

However, it was only in 2006 that the company approached the Ministry seeking in-principle approval to strike a strategic alliance with BG. The ownership of the blocks remained with it.

This was the first set of blocks of ONGC to be opened up for private companies under the Government's policy of allowing private players in the nomination blocks held by the company for the sake of better technological inputs.

ONGC is seeking extension of time through a proper process, sources said, adding that the company was willing to offer fresh development plans for the blocks.

According to the Ministry, the validity of licence for one block has already expired, while the other two are due to expire in this year, prompting the Government to take them back.

Further, the Ministry had said that ONGC's offer of these blocks does not seem to have generated sufficient interest among bidders, whereas under NELP offerings, extremely keen competition has been witnessed particularly for all KG blocks.

"Considering these factors, within the overall exploration policy of the Government regarding a level playing field and emphasis on transparency, it has been decided to offer these blocks in the ensuing rounds of NELP upon expiry of their Petroleum Exploration Licence validity," the Ministry had said.

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