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During
2007-08, crude oil production in the country is expected
to be about 34.763 million metric tones (MMT) and 31.67
billion cubic meters (BCM) of natural gas production as
against the production of 33.99 MMT of crude oil and
31.74 BCM of natural gas in 2006-07.
During
XI Plan period, crude oil production is likely to
increase 24% as against actual crude oil production
during X plan period. With exploration and development
efforts made under New Exploration Licensing Policy (NELP),
Natural Gas production in the country is likely to be
doubled from the present level of gas production of
about 90 million standard cubic meters per day (MMSCMD)
by end of 11th Five year plan period.
New
Exploration Licensing Policy (NELP) provides an
international class fiscal and contract framework for
Exploration and Production of Hydrocarbons. In the first
six rounds of NELP spanning 2000-2007, contracts for 162
exploration blocks have been signed. Under NELP, 58 oil
and gas discoveries have been made in 17 exploration
blocks. As the exploration progresses, new oil and gas
discoveries are likely to come in future. Under seventh
round of NELP, Government has offered 57 exploration
blocks, which was launched on 13th December 2007. The
quantity of Crude oil
& Petroleum products imported during 2006-07 was
111.502 MMT and 16.967 MMT valued at Rs. 219029 crore
and Rs. 40389 crore respectively. In the same period
32.737 MMT of petroleum products valued at Rs. 80898
crore were exported. During April-November, 2007 of the
year 2007-08, 79.738 MMT of crude oil valued at Rs.
165789 crore and 12.710 MMT of petroleum products valued
at
Rs. 33766 crore of petroleum products have been imported
and 26.609 MMT valued at Rs. 68980 crore have been
exported
The
product imports during April to November 2007 of year
2007-08 were to the tune of 12.710 MMT valued at Rs.
33766 crore as against 11.836 MMT valued at Rs. 28439
crore during the corresponding period of year 2006-07.
The change in imports of products during April to
November 2007 of year 2007-08 vis-à-vis the import
during the corresponding period of preceding year was
thus 7.4% higher in terms of quantity and 18.7% higher,
in terms of value. The export of petroleum products went
up to 26.609 MMT valued at Rs. 68980 crore during April
to November 2007 of year 2007-08 as compared to 22.372
MMT, valued at Rs. 57413 crore during the same period of
the year 2006-07. Export of petroleum products during
April to November 2007 was higher by 18.9% in terms of
quantity and 20.1% in terms of value over the exports
during the corresponding period of previous year.
The
Tenth Five Year Plan (2002-2007) outlay for the Oil
& Gas sector had been fixed at Rs.1,03,656.00 crore,
against which the actual expenditure has been
Rs.1,14,461.27 crore, which is 110.42% of the allocated
outlay. The Eleventh Five Year Plan (2007-2012) outlay
for the Oil & Gas sector has been fixed at
Rs.2,29,072.60 crore, which is about 121% more than the
Tenth Plan allocation. The Budget Estimate (BE) for the
year 2008-09 has been proposed at Rs.48,031.26 crore.
Natural
Gas has emerged as one of the most preferred fuel due to
its environmentally benign nature, greater efficiency
and cost effectiveness. At present, the main producers
of natural gas are Oil and Natural Gas Corporation
Limited (ONGC), Oil India Limited (OIL) and the Joint
Ventures of Panna Mukta & Tapti, and Ravva. Out of
the total production of around 96 MMSCMD, after internal
consumption, LPG extraction and unavoidable flaring,
around 73 MMSCMD is available for sale to various
consumers. In addition, around 7 MMTPA of re-gasified
LNG (about 23 MMSCMD) is also being supplied to domestic
consumers.
181
BIDS RECEIVED FOR EXPLORATION BLOCKS OFFERED UNDER NELP-VII
The
Government has received 181 bids for 45 blocks for it
bidding process for oil exploration which included 7
deep water blocks, 2 shallow water blocks and 3 on-land
blocks have not received any bid. A total of 96
companies including 21 foreign companies and 75 Indian
companies have bid either on their own or as consortia.
The Government’s desire to enhance the number of
players in the E&P sector has been achieved as is
evident from the fact that 42 new players have bid for
the nine S-type blocks either on their own or in
consortium. Similarly, in the deep water blocks 2 super
majors, including BP and BHP Billiton have bid in
consortium with Indian companies, namely, RIL and GVK,
respectively. The participation of super majors is
likely to usher in world class technology in the Indian
oil and gas exploration sector and will also lead to
transfer of technology to Indian companies as a result
of the consortium criterion introduced for the first
time under NELP. Other bidders in Deepwater include ONGC,
Cairn, GSPC amongst others.
As
per the quick assessment carried out by DGH, on the
basis of information provided by the bidders along with
their formal bids, 45 blocks out of the offered 57
blocks are likely to be awarded to the bidders.
This
will include award of 12 deep water blocks, 7 shallow
water blocks and 26 on-land blocks. As per the bids
received, the award of blocks is likely to be fairly
balanced in favour of public sector E&P companies
and private sector including Indian and foreign
companies.
NELP-VII,
by far, has been successful as may be seen from the
following facts:
•
181 bids, highest ever received for 45 blocks
under NELP-VII against 165 highest bids received for 52
blocks in last round of NELP-VI.
•
A total of 535 data packages amounting to Rs 85
crore were sold as against the previous best sale of Rs.
78.60 crore in previous round in NELP-VI.
•
A total of 96 companies have bid against the
previous best of 66 companies in the NELP-VI round.
•
A total of 9 new foreign companies out of 21
foreign companies submitted bids under NELP-VII.
•
26 blocks out of the bid 45 blocks attracted
multiple bids.
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