Dig deep

New Delhi, Aug. 24: The government is expecting $1.5-billion investment in oil and gas exploration under the seventh round of Nelp (New Exploration and Licensing Policy), which is higher than in the previous round. It is also expecting huge earnings from revenue sharing with firms when the oil and gas blocks commence production.

Officials said the directorate general of hydrocarbons has completed the scrutiny of the bid documents and would award the blocks to the bidders in September.

They said the bidders had committed themselves to investing $1.49 billion in 45 blocks in the first phase of exploration. This comprises $321.15 million in deep sea exploration, $598.255 million in shallow waters and $572.75 million in onland blocks.

The successful bidders, sources said, would undertake seismic surveys and dig 141 exploration wells in the first phase.

Of the 57 blocks on offer, there were no bids for seven deep sea blocks, two shallow water and three onland blocks.

There were 12 deep sea blocks on offer, of which seven will be awarded to the consortium of BHP Billiton and GVK Oil and Gas.

Two blocks will go to the consortium of Oil and Natural Gas Corporation (ONGC) and Gujarat State Petroleum Corporation (GSPC), while a block each will go to the Reliance Industries-British Petroleum combine, Cairn Energy, and the consortium of ONGC and Oil India Limited (OIL).

Officials said ONGC-GSPC and Hindustan Petroleum Corporation Limited-Mittal Energy had emerged winners for the two Krishna-Godavari basin blocks in the shallow water category.

Indian Oil Corporation, GAIL (India) Limited, Vasundhara Resources, Omkar Natural Resources, EnSearch Petroleum, and Quest Petroleum were the winners of some onland blocks.

ONGC and its partners got 11 onland blocks, while the consortium of OIL, HPCL-Mittal Energy and Hindustan Oil Exploration Company were successful for the Rajasthan block.

ONGC and its partners has bagged the maximum number of oil and gas exploration blocks.