Govt may restrict bids over security reasons

The two offshore blocks in the Andaman and Nicobar Islands are strategically important from the security point of view.

Hence, companies from few countries including China, Pakistan, Myanmar, Indonesia, Malaysia, Bangladesh and the entire Arab world are expected to be kept out from the bidding process for the two blocks in Andaman and Nicobar Islands. These suggestions were put forward by the defence ministry in the several rounds of discussions with the petroleum ministry.

The petroleum minister will hold discussions with various ministries including defence, environment, finance and law before putting up blocks for exploration under NELP.

Further, it is also expected that the government would put the precondition in these two blocks that the consortium bidding for them should have an Indian company as the leader in the consortium.

Talking to reporters on the issue, Petroleum Minister Ram Naik, who is in Andamans to inaugurate the LPG bottling plant of IOC, said “we are going with the Defence Ministry (on security considerations of oil and gas blocks). Defence consideration is utmost in our mind while going for exploration.”

Refusing to elaborate on the security concerns raised by the Defence Ministry, Naik said he would hold another round of discussions with Defence Minister George Fernandes towards the end of this month where modalities of the blocks to be offered would be worked out.

Incidentally, Fernandes is currently on a week long tour to the communist China for bolstering ties and is expected to return on April 27.

Petroleum Ministry officials, however, said that the entire list of countries suggested by the Defence Ministry may not be barred from NELP-IV bidding. “We understand a few countries… probably 3 or 4 may not be allowed,” they said but did not name the countries.

(The correspondent’s trip to Andamans was sponsored by IOC.)