NELP –IV LONDON ROAD SHOW A SUCCESS
: 83 COMPANIES & ORGANISATIONS PARTICIPATE
SO
FAR 9 DISCOVERIES WITH 300 MILLION TONNE IN-PLACE RESERVES UNDER
NELP: RAM NAIK
Continuing its efforts
to attract investments for exploration of oil and gas in India,
Government of India launched an effective promotional campaign
in London on June 5, 2003 showcasing 24 blocks on offer under
the fourth round of the New Exploration Licensing Policy (NELP-IV).
The blocks include 12 deepwater blocks, 11 on-land blocks and
1 shallow water block. After the inaugural road show held at New
Delhi on May 20, 2003, the London road-show is the first one to
be held abroad for NELP-IV.
A high level delegation
led by Shri Ram Naik, Minister of Petroleum & Natural Gas,
which also included Shri M.S. Srinivasan, Additional Secretary,
Ministry of Petroleum & Natural Gas, Dr. Avinash Chandra,
Director General, Directorate General of Hydrocarbons and Shri
J.M. Mauskar, Joint Secretary, Ministry of Petroleum & Natural
Gas, is currently in London to promote NELP-IV to prospective
E&P companies and investors.
Shri Naik highlighted
that NELP-IV has been launched in the backdrop of the recent huge
deepwater gas discoveries made in the Krishna-Godavari basin on
the East Coast of India. In fact some of these have been mentioned
as being the largest in the world during the year 2002. So far
a total of 9 discoveries with initial in place reserve estimates
of over 300 million metric tonnes of oil plus oil equivalent gas,
have been made under NELP during the short span of less than three
years of exploration. With the implementation of an aggressive
exploration programme under NELP, more and more discoveries are
expected to be made in the future.
Shri Naik also spoke
about cordial Indo-U.K. relationships and increasing trade and
economic cooperation between the two countries. Many U.K. based
E&P companies like BG, Premier Oil, Cairn Energy and Hardy
Exploration & Production Company are operating in India.
The roadshow was
attended by 83 companies and organisations. Some of the E&P
companies, which attended the roadshow were BG Group, BHP, Amerada
Hess, BP, ENI, Itochu,Saudi Aramaco, Cairn Energy, Hardy Exploration
and Tullow Oil.
Shri Ram Naik emphasised
the highly attractive opportunities being offered under NELP-IV
and impressed upon companies to participate in the bidding process
to enter into a long term beneficial relationship by becoming
part of India’s growing and vibrant Petroleum Sector. He mentioned
that the promotional road shows for NELP-IV will also be held
at Calgary, Canada (9-10 June), Houston, USA (11-12 June) and
would conclude at Perth, Australia (26-27 June).
Shri R. Sen, Indian
High Commissioner in London, while welcoming the delegates, offered
that the High Commission would do its best to facilitate all investors
bidding under NELP-IV. Shri J.M. Mauskar made a comprehensive
presentation on the policy, fiscal, legal and contractual framework
and Dr. Avinash Chandra made detailed presentation on the geology
of the offered blocks. Both speakers highlighted the attractiveness
of the terms as well as the geological prospects under NELP-IV.
They brought out that the investment opportunity offered under
NELP-IV was a world class opportunity.
Some of the major
stakeholders in India’s upstream petroleum sector namely BG Group,
Oil & Natural Gas Corporation Limited and Reliance Industries
Limited also made presentations during the NELP-IV roadshow about
their experiences, and the plans and vision their companies had
regarding India’s petroleum sector, especially the upstream sector.
They emphasised the strong fundamentals as well as the attractiveness
of the E&P sector in India and concluded that the investment
climate in India was indeed positive with very attractive fiscal
terms under NELP. At the same time the geology did present a significant
hydrocarbon potential.
Mr. Ian Lockhart,
Regional Director, Middle East, Africa & South Asia of Department
of Trade and Industry, Government of U.K. also spoke at the roadshow.
He drew attention to the growing demand supply gap of fuels and
investment opportunities available under NELP-IV. He encouraged
U.K. based E&P companies and investors to consider the investment
opportunity offered by Government of India under NELP-IV. He also
pointed out certain areas for possible improvement from investors
point of view.
Mr. Philip Jackson,
head of Energy and Infrastructure of JP Morgan made a presentation
and highlighted the robust macroeconomic fundamental. He brought
out that India was one of the best investment destinations with
its huge market, political stability and progressive reforms and
policies.
Shri Naik announced
that in order to facilitate investors data viewing centres have
been opened at London, Houston and New Delhi. Interested companies
can purchase the data at New Delhi from the office of Directorate
General of Hydrocarbons. Key information such as salient technical
data on the blocks on offer, the bid documents and highlights
of NELP-IV, were available at a special web site at www.indigopool.com.
This website can also be accessed from the Ministry’s official
website www.petroleum.nic.in
as well as www.dghindia.org.
Shri Naik also mentioned
that India has launched the second round of Coal Bed Methane (CBM)
exploration offering 9 blocks on 23rd May, 2003. The
first roadshow was held at Delhi on 27th May, 2003
and the second roadshow will be held at Houston on 12th
June. Since U.K. is also exploiting CBM, anyone interested in
CBM exploration may get in touch with Director General, Hydrocarbons
for details.
Shri Naik informed
the companies that the bid closing date for NELP-IV was September
30, 2003 and exhorted them to participate in the bidding process
and be a partner in the ever growing Hydrocarbon Sector of India.
