Ministries for open bidding of oil blocks

After several rounds of discussions between the defence and the petroleum ministry, the government has finally agreed to go for open bidding...

After several rounds of discussions between the defence and the petroleum ministry, the government has finally agreed to go for open bidding in the two offshore blocks in the Andaman Islands to be offered under the fourth round of NELP.

Earlier, the defence ministry had raised concerns on security grounds and in keeping with the concerns of the defence ministry there were plans to keep away companies from some countries including China, Malaysia, Bangladesh out of bidding for the two blocks in the Andamans.

However, sources say, the government agreed to go for open bidding in these two blocks and have also decided to inbuilt the security concerns in the contracts for the blocks. Sources said by keeping away companies from some countries, government would have not only reduced the competition for these two blocks it would also have send wrong signals for ONGC Videsh Limited which has participation with Chinese company abroad.

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Officers from Indian Navy were also consulted on the issue and according to sources it would not make much difference by keeping away companies from some countries in participating for bidding in the two blocks. In the present age of advanced technology if a country wants to access information in the region, it can do so even without the help of companies in the region.

The issue was discussed at length and it was felt that by keeping away companies from some countries the government might send wrong signals as far as foreign investments are concerned, sources added. The government is expected to offer around 25 blocks in the first week of May under the fourth round of NELP. Earlier, ONGC had explored some offshore blocks in the Andamans but did not strike any results.