SHRI RAM NAIK CALLS UPON INVESTORS
TO UTILISE ATTRACTIVE INVESTMENT OPPORTUNITY UNDER NELP-IV
INVESTMENT
CLIMATE POSITIVE, SIGNIFICANT HYDROCARBON POTENTIAL IN INDIA :
E & P COMPANIES
IMPRESSIVE
PRESPONSE TO CALGARY NELP-IV ROADSHOW
Efforts to attract
investments for exploration of oil and gas in India continue with
Government of India launching yet another impressive promotional
campaign in Calgary (Canada) last evening. Speaking on the occasion
Shri Ram Naik, Minister of Petroleum & Natural Gas stressed
that the Indian upstream oil sector offers attractive investment
opportunity to the companies seeking interests in exploration
and production. He emphasised that the perception for finding
oil and gas in India has greatly improved with 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. Shri Naik
highlighted that NELP-IV has been launched in this backdrop with
24 blocks (12 deepwater blocks, 11 onland blocks and 1 shallow
water block) on offer under the fourth round of the New Exploration
Licensing Policy (NELP-IV).
Shri Naik informed
that 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. He also spoke about cordial
Indo- Canadian relationships and increasing trade and economic
cooperation between the two countries. Canadian companies Niko
,Canoro and Geoglobal Resources are operating in the exploration
and production sector in India.
Some of the major
stakeholders in India’s upstream petroleum sector namely BG
Group, Oil & Natural Gas Corporation Limited and Cairn Energy
and Niko also made presentations during the NELP-IV roadshow.
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 Indian geology presents
a significant hydrocarbon potential. They deliberated upon
their experiences, success stories and the plans and vision their
companies have regarding India’s petroleum sector, especially
the upstream sector. Ernst & Young, Internationally reputed
financial consultant highlighted the robust macro-economic fundamentals.
It was brought out that India was one of the best investment destinations
with its huge market, political stability and progressive reforms
and policies.
The road show at
Calgary drew an impressive response and was attended by 34 companies
and organisations. The inaugural road show held at New Delhi on
May 20 had the participation of 67 companies and organisations
while the second road show at London was attended by 83 companies
and organisations. The promotional road shows for NELP-IV will
also be held at Houston, USA (11-12 June) and would conclude at
Perth, Australia (26-27 June). The bidding for NELP-IV blocks
closes on September 30, 2003.
Shri B. Jaishankar,
Consul General of India in Vancouver welcomed the delegates and
offered that the High Commission in Canada 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.
Shri Naik further 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.
A high level delegation
led by Shri Ram Naik which also included Shri B.K. Chaturvedi,
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 Calgary to promote NELP-IV
to prospective E&P companies and investors.
India has also
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. Companies
interested in CBM exploration and production may get in touch
with Director General, Hydrocarbons for details.
