The Hindu Business Line : GVK makes exploration entry with BHP

Major winners
Other provisional winners for 19 deepwater blocks included BP-Reliance Industries consortium, Cairn, and ONGC with varied partnerships.

Our Bureau

Advertisement

New Delhi, June 30 The Seventh round of New Exploration Licensing Policy (NELP-VII), which was haunted by taxation concerns that led to bid submission date being deferred three times before the final June 30 deadline, saw first timer GVK Group in consortium with BHP Billiton emerge as provisional winner of seven deepwater blocks.

Some of the other provisional winners for 19 deepwater blocks put on offer included BP-Reliance Industries consortium, Cairn, and ONGC with varied partnerships.

The GVK-BHP Billiton consortium has emerged as provisional winners of seven deepwater exploration blocks off the west coast of India. GVK Oil & Gas Ltd, a subsidiary of GVK Power & Infrastructure Ltd (GVKPIL) is the lead partner in the consortium.

The Government had put on offer 57 oil and gas blocks of which 19 were deepwater blocks, nine shallow water blocks, and 29 onland blocks (including S-Type blocks). The Government had received 181 bids for 45 blocks, with seven deepwater blocks, two shallow water blocks and three on-land blocks not receiving any bids.

A total of 96 companies have bid in the seventh round. While 19 blocks received single bid, 26 attracted multiple bids.

In the shallow water category of NELP VII, some of the provisional winners include Essar, Adani, and ONGC along with consortium partners GSPC and HPCL Mittal Energy Ltd. In the on land blocks category, ONGC with its partners was emerging as a dominant player till the time of going to press.

Mr V.K. Sibal, Director-General of Hydrocarbons, said, “Going by the number of bids, it shows that India is still a good destination. There are new players.” Asked about the blocks that saw low response, he said, “gas-prone areas have got a lukewarm response.”

Some of the gas-prone areas include Kerala-Konkan region and Andaman area. According to industry sources, the issue of tax incentives not being available for gas production could also be a reason for the players not bidding for such blocks. The three east cost deepwater blocks are in the same basin as the discoveries made by Reliance Industries Ltd and ONGC. The blocks in Mumbai offshore are beyond the Mumbai High fields.

Addressing news persons, Mr S. Sundareshan, Additional Secretary in the Petroleum Ministry, said the country hopes to draw over $3 billion in the latest round. There are 21 foreign and 75 domestic companies in the fray. In order to enhance the country’s energy security, the Government had offered 57 exploration blocks under the seventh round on December 13, 2007.

Evaluation of the bids will be undertaken by the Government and the blocks are expected to be awarded within two months. The entire process would take about two months from bid receipt to the award of contracts and the contracts are expected to be signed by September 30.

Related Stories:
GVK to rope in partners for ultra mega projects
NELP VII bid submission date of June 30 not to be deferred
NELP deadline extended to June 30

More Stories on : Petroleum | Alliances & Joint Ventures | Outlook

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page