55 oil, gas blocks to go under the hammer

New Delhi, January 18

India today put on auction record exploration acreage for prospecting of oil and gas, from 55 blocks, in the first bidding round in eight years.

Each block on offer has been carved out by prospective bidders under the open acreage licensing (OAL) of the new Hydrocarbon Exploration and Licensing Policy (HELP), Oil Minister Dharmendra Pradhan said while launching the round.

Blocks would be awarded to the company which offers highest share of oil and gas to the government and commits to do maximum exploration work by way of shooting 2D and 3D seismic survey and drilling exploration wells.

“Last date of bidding is April 3,” Pradhan said, adding that the blocks would be awarded by June/July.

Increased exploration would lead to more oil and gas production, helping the world’s third largest oil importer to cut import dependence.

Prime Minister Narendra Modi has set a target of cutting oil import bill by 10% to 67% by 2022 and to half by 2030.

India had in July last year allowed companies to carve out blocks of their choice with a view to bringing about 2.8 million square km of unexplored area in the country under exploration.

Under this policy, companies are allowed to put in an expression of interest (EoI) for prospecting of oil and gas in any area that is presently not under any production or exploration licence.

The blocks or areas that receive EoIs at the end of the cycle are put up for auction with the originator or the firm that originally selected the area getting a 5-mark advantage.

ONGC and Cairn India had put in 41 out of 57 bids received in November last year. Private player Hindustan Oil Exploration Co bid for one area in a round. Of the 57 EOIs put only 55 blocks were cleared for bidding after eliminating areas that are under no-go zone or overlapping with existing mining lease. — PTI