DEC 15: Government will offer 25 oilblocks in proven sedimentary basins including eight each in deep water and shallow water for exploration and development to investors under the second round of New Exploration and Licensing Policy (NELP) on December 18."We will invite bids from public and private sector for giving out 25 oil blocks including eight each in deep water and shallow waters and nine onland, under the second round of NELP on December 18, 2000," the Petroleum Minister Ram Naik told reporters here today.While the eight deep water blocks are on the West Coast, five of the shallow water blocks are on East and the remaining on the West Coast. Of the nine onland blocks, two blocks are in Gujarat, Uttar Pradesh and West Bengal and one block each in Assam, Orissa and Rajasthan, he said adding the blocks being offered in NELP round II are located in proven and promising sedimentary basins.Stating that IHS Energy Group of US has been appointed marketing consultant for the round, Naik said roadshows would be held at Delhi, London, Houston, Singapore and Tokyo in January-February 2001.The first roadshow would be held in New Delhi on January 10, coinciding with Petrotech 2001 Exhibition and Conference and would be followed by the roadshows in London on January 18 and 19, Houston on January 22 and 23, Tokyo on February 5 and 6 and Singapore on February 8 and 9, he said.Deep water blocks being offered for private sector participation are mostly confined to the western coast stretching from Mumbai offshore to Kerala-Konkan stretch, Naik said.Of the eight shallow water blocks being offered two are in Cauvery basin, one in Bengal and two in Mahanadi offshore. One shallow water block each in Kerala-Konkan stretch, Gujarat-Saurashtra basin and Mumbai offshore region would also be offered this time, he said.Of the nine onland blocks being offered for bidding under NELP-II, two blocks being offered in UP are in Ganga Valley and Vindhyan region, while the ones in Gujarat are in Cambay basin. The other onland blocks are in Upper Assam basin in Assam, Mahanadi basin in Orissa, Jaisalmer district of Rajasthan, and Bengal-Purnia basin on West Bengal, Naik said.Petroleum Ministry sources said royalty rate at 12.5 per cent of international market value for crude for onshore area and 10 per cent of offshore area and for gas at 10 per cent would offered in the NELP bidding.The government had earlier this year awarded 25 blocks for exploration out of a total of 48 blocks on offer for private sector participation under the first round of bidding, Naik said adding production sharing contracts for 23 blocks were signed in April.While the contract for one block would be signed later this month, further diligence and negotiations with the bidder would have to be done before signing the contract, he added.
