The Hindu Business Line : IOC to venture alone for small onland blocks in seventh round

Type-S course
The new Type-S category blocks cover small areas up to 200 km.
Govt has waived technical capability criteria for these blocks.
Till now, IOC could not buy assets as operator due to the technical norms.

Mr B.M. Bansal

Richa Mishra

New Delhi, Dec. 23 Indian Oil Corporation Ltd is gearing up to venture out alone in the domestic oil and gas exploration & production (E&P) activities. The company plans to aggressively bid as an operator for the new category of acreages — small blocks — put on offer under the seventh New Exploration Licensing Policy (NELP) round.

However, for the deepwater blocks offered in the latest licensing round, the company will scout for a foreign partner.

Speaking to Business Line, Mr B.M. Bansal, Director-Planning and Business Development, said: “The small blocks give IOC an opportunity to participate on our own as an operator. Till now IOC has not been able to acquire assets as an operator due to the technical criterion prescribed.”

Special dispensation

In NELP VII, the Government has introduced a new type of onland blocks called Type-S, covering small areas up to 200 km. For these blocks, the Government has provided special dispensation in the form of waiver of technical capability criteria.

Under NELP VII, 57 oil and gas blocks, comprising 19 deepwater blocks, nine shallow water blocks, and 29 onland blocks have been put on offer. Of the 29 onland blocks, the Type-S category has nine blocks, mainly in Cambay Basin.

“Participation in this category will give us the desired experience of an operator. However, for deepwater exploration, we will have to rope in a partner with technical expertise,” he said.

Most of the 19 deepwater blocks offered under NELP-VII are in less explored basins. Therefore, it would require operators having experience in deepwater activities.

Upstream portfolio

At home, IOC currently has 12 oil and gas assets. IOC and its consortium partners have been awarded two exploration blocks in Mumbai offshore in Round-VI of bidding under NELP. With this, IOC has an upstream portfolio consisting of participatory interest in eight blocks under NELP and two blocks under coal-bed methane, in addition to two farm-in blocks in northeast India. The company has seven blocks overseas.

“Our business strategy focuses primarily on expansion across the hydrocarbon value chain, both within and outside the country, while simultaneously revisiting its strategic plans and undertaking mid-course corrections, wherever necessary,” he said.

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