The Hindu Business Line : GVK-BHP Billiton to invest $400 m for oil hunt

Hyderabad, Dec. 9 GVK Oil & Gas Ltd is set to invest up to $400 million in the seven oil blocks along with its consortium partner in the exploratory phase.

GVK-BHP Billiton consortium has been awarded seven deepwater blocks under the New Exploration Licensing Policy (NELP-VII). Of the seven blocks, one is located in the Kerala-Konkan region and the rest of the six deepwater blocks off Mumbai.

The Chairman of GVK PIL, Mr G.V.K. Reddy, told Business Line that the consortium is likely to pump in about $400 million over the exploration period of five years.

Mr Reddy said, “the award of seven blocks for the GVK consortium marks the group foray into oil exploration. Based on the outcome of the exploration, we will then decide on the quantum of investment for the follow-up phase.” Asked if the slowdown would help procure rigs at lower cost, he said, businesses see upward and downward trends and any long-term business plan factors all these issues.

Last week, the Ministry of Petroleum & Natural Gas has handed over a letter of allotment of these blocks to the consortium. The NELP VIII, launched in December 2007, had offered 57 blocks of oil and gas, of them 19 were deepwater.

According to estimates, India has an estimated sedimentary area of 3.14 million sq km which comprises 26 sedimentary basins and of this, 1.35 million sq km is in deepwater.

BHP Billiton is a partner with interests in mining, oil and gas in the US, UK, Australia and brings expertise in the entire oil and gas business, he said.

“We are in the process of discussions for future course of action with regard to geophysical surveys. We believe there is vast potential in the region,” he said.

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