Cheveron not to bid for blocks under NELP

The government would start the road shows in Europe, America, Australia and south Asia, apart from Delhi, for 48 blocks – onshore, offshore and deep sea – under NELP from January 22.

Welcoming the government move to provide fiscal incentives for the oil blocks, Simpson said "tax benefits for these blocks is a positive move but it would be tough for us to bid as there is limited capital in the industry."

On potential investment in the Indian oil sector, he saidinvestment would flow into the country but in the current scenario it would be moderate. "Investment would be not be billion dollars but only million dollars," he added.

However he said, the moderate foreign investment in the Indian oil sector does not have to do anything with the instability in the political environment. On the outlook for the global oil sector in 1999, Simpson said the sector would remain in depressed state due to low demand and high supply.

He said oil prices would remain stable in the current year and would move in the range of 12-15 dollars per barrel.