Press Information Bureau

Government of India

Cabinet Committee on Economic Affairs (CCEA)

23-August-2012 19:13 IST

The Cabinet Committee on Economic Affairs (CCEA) today approved the following:

(i) Cancellation of two blocks viz., blocks CB-ONN-2010/8 and CB-ONN-2010/9 awarded to Sankalp Oil and Natural Resources Ltd.

(ii) Award of five blocks to the first ranked / single / next highest ranking bidder.

The approval will accelerate exploration and production activities in the country and is expected to result in hydro-carbon reserve accretion, thereby, increasing the energy security of the country. The cancellation of award of two blocks under NELP-IX would be a deterrent for non-serious bidders.

Background:

The Government of India launched ninth bid round of New Exploration Licensing Policy (NELP-IX) on 15.10.2010. 34 blocks covering an area of about 88,807 Sq. Kms were offered under NELP-IX. The offered blocks included - 08 deepwater blocks, 07 shallow water blocks and 19 onland blocks. Bids were opened by Director General of Hydrocarbon (DGH) on 28.03.2011. A total of 74 bids were received for 33 blocks (8 deepwater blocks, 6 shallow water blocks and 19 onland blocks) from National Oil Companies and private/foreign companies. No bid was received for one exploration block in shallow water. The bids received were evaluated by DGH as per the Notice Inviting Offers (NIO) / Bid Evaluation Criteria (BEC).

The Cabinet Committee on Economic Affairs in its meeting held on 23.3.2012, approved the award of 16 blocks and rejected bids for 11 blocks. Production Sharing Contracts (PSCs) were signed for 13 blocks on 28.03.2012. Three blocks were awarded to Sankalp Oil and Natural Resources Ltd. Sankalp Oil and Natural Resources Ltd. signed PSC on 27.06.2012 for one block CB-ONN-2010/10 only and declined to sign PSCs for two blocks CB-ONN-2010/8 and CB-ONN-2010/9. The proposal for three blocks RJ-ONN-2010/1, CB-ONN-2010/2 and GV-ONN-2010/1 could not be placed before CCEA for consideration due to filing of Writ Petition by Ishar Gasoil Pvt. Ltd., one of the bidders.

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SC/SKS/SM