ENCOURAGING RESPONSE TO NELP-III PROMOTIONAL
ROADSHOWS
OVERSEAS COMPANIES FIND INVESTMENT
CLIMATE CONDUCIVE IN INDIAN HYDROCARBON SECTOR: RAM NAIK
Shri Ram Naik, Minister of Petroleum & Natural
Gas announced here today that there was encouraging response to
the promotional roadshows and efforts of exploring and producing
more oil and gas in the country would get a further boost. He
was speaking to the media persons in New Delhi after completion
of the promotional Roadshows for the Third Round of New Exploration
Licensing Policy ( NELP-III). The Roadshows were held in Singapore
on 28th-29th May, London on 6th
– 7th June, Houston, USA on 10th-11th
June and in Calgary, Canada on 13th- 14th
June in addition to the first Roadshow in New Delhi on 9th
April.
A high level Oil Mission led by Shri Ram Naik,
Minister of Petroleum & Natural Gas, which included Shri.
Santosh Gangwar, Minister of State for Petroleum & Natural
Gas, Shri B.K. Chaturvedi, Secretary, (in Houston and Calgary),
Shri Naresh Narad, Additional Secretary, (in Singapore and London),
Dr. Avinash Chandra, Director General of Hydrocarbons and
Shri J.M. Mauskar, Joint Secretary, visited Singapore, London,
Houston and Calgary. These Locations were chosen based on the
feedback provided by the Marketing Consultants for NELP-III, viz.
CWC Associates and Schlumberger, in view of the significant presence
of E&P companies at these places.
Shri Naik said that these Roadshows attracted
E&P companies, financial institutions, and oilfield service
companies. The Singapore Roadshow was attended by 35 E&P and
related companies, the London Roadshow by 54 companies, the Houston
Roadshow by 71 companies and the Calgary Roadshow by 38 companies.
During the roadshows, comprehensive presentations were made on
the geology as well as commercial aspects relating to the 27 blocks
on offer. They were followed by one-on-one meetings with leading
companies. Some of the main E&P companies, which attended
Roadshows and had one-on-one meetings were ExxonMobil, Shell,
BG, BP, Unocal, Petronas Carigali, Enterprise Oil, Woodside Energy,
Cairn Energy, Premier Oil, Talisman Energy, En Cana Energy, etc.
They showed keen interest in NELP-III. Shri Naik expressed optimism
that this would lead to better competition resulting in aggressive
exploration programmes and increased production of oil and gas.
Dwelling upon the response and highlights of
the Roadshows,
Shri Naik brought out that some of the successful companies in
India like Cairn Energy, BG, Niko Resources and ONGC also shared
their success stories and experiences about operating in India.
Cairn Energy pointed out that they had accreted oil and gas reserves
of over 70 million metric tonne over the last 3 years and found
the environment in India very conducive for expanding their investments.
BG expressed that they have a long term plans for Indian oil and
gas market and were looking at an ever expanding horizon for investing.
BG, who have already invested about US$ 400 million in India,
announced their plans to add another US$ 600 million in future.
Niko Resources stated that the working culture in India has now
become extremely positive and their anticipated returns have increased
substantially. Investment bankers JP Morgan and internationally
reputed consultants Ernst & Young also presented separately
their perception of country profile, investment climate, risk
factors about India etc. during the Roadshows. This had a positive
impact on improving investor perceptions regarding India.
Shri Naik further stated that a new dimension
added to these Roadshows was the active participation of the Governments
of U.K, U.S.A. and Canada to encourage companies in their countries
to participate in NELP-III and assure them of their full support.
They highlighted the strong cultural and trade relationship with
India. While Mr. David Warren, Director International Group, Department
of Trade & Industries, Government of U.K. and Ms. Vicky Bailey,
Assistant Secretary of State, Department of Energy, Government
of USA addressed the Roadshows in London and Houston respectively;
Mr. Herb Dhaliwal, Federal Minister for Natural Resources, Government
of Canada and Mr. Mark Norris, Minister for Econmic Development,
Government of Alberta organised receptions to the Indian Mission
in which leading captains in the oil industry were invited in
a good number. During the London Roadshow, Mr. David Warren stated
that U.K. Government fully supported and encouraged U.K. companies
to come forward and invest in India. Ms. Vicky Bailey in her Houston
Roadshow address stressed that the US department of Energy in
its Energy Policy Report has recommended India as one of the focus
countries for investment. She also exhorted upon investors to
make full use of the attractive fiscal terms and participate not
only in NELP but also the Coalbed Methane (CBM) offers that are
likely to come up in future. Interacting with the investor community
at Calgary receptions both the Ministers Mr. Dhaliwal and Mr.
Norris encouraged companies to look at the offer of blocks under
NELP-III and to seize the opportunities opened up in the Indian
hydrocarbon sector.
"There is appreciation in the global oil
industry about the progress made and initiatives taken by the
Government of India in hydrocarbon sector in the last three years.
This would certainly reflect in the bids, the last date of their
receipt being the 28th August 2002," said Shri Naik
at the end.
