April 09, 2002

    Shri Ram Naik, Minister of Petroleum & Natural Gas, announced that Cairn Energy has discovered good quality crude oil, 400 meters below their existing gas discovery at 1000 Metres in Laxmi Field of block CB-OS-2 of the Cambay Basin. This discovery was made by them yesterday. The Minster said this while launching the First of the Road Shows of NELP-III held in New Delhi today. The oil from the shallow water, 20 metre depth, well LA – 2 flowed at 5,200 Barrels per day with 56/64 inch choke and is sweet with 44 degree API without sand or water. "This discovery shows that with use of latest techniques and equipment together with geological insight, treasure of oil and gas is awaiting to be found in our basins", Shri Naik said.

    Inviting oil companies from India and abroad to participate in the third round of NELP, Shri Naik said that a large volume of seismic data has been acquired for off-shore areas in the last two years. The efforts to give impetus to exploration of oil and gas have shown encouraging success as discoveries have been made in Krishna Godavari Deepwater block from NELP-I by Cairn Energy. More discoveries are expected in near future from existing blocks. This has changed the perception about prospects of finding oil and gas in India. He asked oil Companies to take advantage of one of the best fiscal and contractual terms offered by India. In addition to level playing field to foreign and domestic companies on the one hand and private and public sector on the other, all the companies have freedom to make alliances by way of unincorporated joint ventures. Referring to 47 contracts signed under first two rounds of NELP-I, Shri Naik said that an investment of about Rs. 9,300 crore is estimated in these blocks.

    Emphasising the need for enhancing oil security of the country the Minister informed that about 81 million tonnes of crude oil were imported in just ended year 2001-2002 at a cost of Rs. 68,000 crore. Domestic production of crude was about 32 million tonnes. To achieve oil security 3 major thrusts have been provided in our policy. This includes increasing domestic availability, acquiring oil and gas equity abroad and efforts to tap non-conventional sources like CBM.

    The 27 blocks on offer in NELP-III include 11 onland blocks, 9 deepwater blocks and 7 shallow water blocks. The Minister thanked various State Governments for giving concurrence to the NELP. The last date for submission of bids is 20^th August, 2002. Shri Naik stressed that fast decision making process would continue as an integral part of third round also. It may be recalled that in NELP-II, entire process of award and signing of contract for blocks was completed in a record time of 3-1/2 months.

    Speaking on the occasion, Shri Santosh Gangwar, Minister of State for Petroleum & Natural Gas, expressed confidence that Oil Companies would take advantage of attracting offer under NELP. This will further enhance the pace of exploration in the country. Shri B.K. Chaturvedi, Secretary (P&NG) also spoke on the occasion while Shri J.M. Mauskar, Joint Secretary in the Ministry had made a presentation on the attractive contractual and fiscal terms. Dr. Avinash Chandra, DGH also spoke about the technical aspects of the exploration blocks bringing out attractive investment opportunity in NELP-III.

    The first Road Show of NELP-III in New Delhi concluded successfully today, which was attended by the representatives of large number of oil companies from India and abroad and both private and national oil companies. In order to promote NELP-III offer four more Road Shows will be held outside India starting with Singapore on 27^th-28^th May, London on 6^th-7^th June and Houston on 10^th-11^th June, culminating at Calgary on 13^th-14^th June, 2002.