The Hindu Business Line : Huge interest in NELP-VI bidding

It is easy to term NELP-VI, which has attracted 165 bids for 52 blocks from various domestic and foreign oil exploration companies, a grand success. The only problem with it is that, except for BP, none of the other biggies such as ExxonMobil, Royal Dutch/Shell, Chevron Texaco and Conoco Phillips have thought it worthwhile bidding for what is arguably the largest number of exploratory blocks being put up for auction anywhere in the world at present. And NELP offers some excellent investment-friendly incentives comparable to any other country.

That said, there is no disputing that NELP-VI has generated interest on a much larger scale than the previous rounds. The success stories of Reliance and GSPC in the KG Basin deepwaters and that of Cairn in Rajasthan are certainly responsible for the long queue of bidders for the latest round of blocks. It would be too early to talk of investments and their impact on allied sectors such as drilling equipment suppliers and off-shore service-providers. Going by the experience of the last couple of rounds, it may be a while before activity begins on the fields and money is invested. However, the interest NELP-VI has generated is bound to buoy stock market sentiment in stocks of exploration companies, drilling equipment suppliers and off-shore service-providers.

Raghuvir Srinivasan

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