AGGRESSIVE BIDDING EXPECTED FOR
NELP-IV BLOCKS: RAM NAIK
A TEAM
OF TECHNICAL EXPERTS TO VISIT US TO STUDY STRATEGIC RESERVES
After a whirlwind
tour to U.K., Canada and U.S.A. to promote 24 exploration blocks
under NELP-IV and 9 blocks under CBM-II, Shri Ram Naik, Minister
(Petroleum &Natural Gas) expressed confidence that following
the highly successful roadshows and impressive response from companies,
the investors are expected to bid aggressively to acquire acreages
in India. Speaking to media here today, Shri Naik also informed
that as a follow up of his visit to a petroleum strategic reserve
site in Texas, a technical team would be deputed to the U.S. shortly.
A high level delegation
led by Shri Ram Naik, which also included Shri B.K. Chaturvedi,
Secretary (P&NG) at Calgary and Houston and Shri M.S. Srinivasan,
Additional Secretary (P&NG) at London, Dr. Avinash Chandra,
DG, DGH and Shri J.M. Mauskar, Joint Secretary(P&NG), returned
after highly successful promotional roadshows at London, U.K.(5th
and 6th June), Calgary, Canada (9th and
10th June) and Houston, U.S.A (11th and
12th June) and interaction with E&P companies as
well as service providers and investors.
The promotional road
shows were undertaken to promote 24 blocks (12 deepwater blocks,
11 onland blocks and 1 shallow water block) in the backdrop of
the recent huge gas discoveries made on the East and West Coast
of India and initial ‘in-place’ hydrocarbon reserve accretion
of over 400 million metric tones in last one year. The roadshows
were attended by 83 companies at London, 34 companies at Calgary
and 66 companies at Houston. The main E&P companies which
attended the roadshows were Exxon-Mobil, Shell, Occidental Oil,
Chevron-Texaco, Marathon, B.G. Group, British Petroleum, BHP(Australia),
Saudi Aramco, Amerada Hess, Cairn Energy, Encana, Talisman Energy
etc. Many companies also had one-on-one meetings with the delegation
at these locations to discuss investment opportunities offered
through NELP-IV.
At the roadshows,
Shri Naik sought investments in the light of improved prospectivity
of the acreages and attractive fiscal and contractual terms offered.
Dr. Avinash Chandra, DG, DGH made a presentation on the geology
and hydrocarbon prospectivity of the blocks on offer. Shri J.M.
Mauskar, Joint Secretary, MOP&NG made a presentation on highly
attractive fiscal package and contractual terms offered under
NELP-IV.
The companies namely
B.G., Cairn Energy, Niko Resources, ONGC and Reliance Industries
Limited also shared their operating experiences and success stories
in India due to the change in work culture. These companies also
brought out the attractive investment opportunities available
in the E&P sector in India. Internationally reputed financial
consulting firms namely J.P. Morgan and Ernst & Young, also
made presentations highlighting the strong macro economic fundamentals,
favourable investment climate and comparative international "risk
reward" parameters vis-à-vis India.
Mr. Ian Lockhart,
International Director, Department of Trade and Industries, Govt.
of U.K. and Ms. Vickey Bailey, Assistant Secretary, Department
of Energy of U.S. Government also spoke at the London and Houston
roadshows, respectively. They encouraged companies and investors
from their countries to avail the attractive investment opportunities
offered by India under NELP-IV and assured full cooperation to
companies. Ms. Vickey Bailey also highlighted that a Task Force
on U.S. Energy Policy constituted by the President George Bush
had recommended India as one of the major energy markets and that
U.S. Government would support the move by U.S. companies to invest
in the Indian energy markets. Mr. C.M. Smith, Assistant Secretary,
Department of Energy, USA met Shri Naik and discussed the areas
of cooperation in Gas Hydrates, E&P and Strategic Petroleum
Storage. The discussions were fruitful and it was agreed to carry
forward cooperation in these areas.
Another high level
delegation led by Shri Ram Naik, which also included Union Minister
for Coal, Shri Kariya Munda, Shri B.K. Chaturvedi, Secretary (P&NG),
Dr. Avinash Chandra, DG, DGH, Shri A.P.V.N. Sarma, Joint Secretary(Coal)
and Shri J.M. Mauskar, Joint Secretary(P&NG) held a roadshow
at Houston on 12th June to promote 9 CBM blocks offered
under the second round of CBM (CBM-II). 32 companies, including
the major companies CDX Gas and Burlington Resources, participated
in the roadshow. The presentations included the geological highlights
and attractive fiscal and contractual terms being offered under
CBM-II. ONGC and RIL shared their experiences on CBM in India.
On the invitation
of Department of Energy of U.S. Government, Shri Naik visited
the Strategic Petroleum Reserve at Bryan Mound Site, Freeport,
Texas. Representative of the U.S. Department of Energy made a
presentation to the delegation highlighting the low cost and technologically
advanced methods used. The strategic petroleum reserves created
by the U.S. at four sites have a storage capacity of 700 million
barrels (approx. 95 MMT) with current inventory of 604 million
barrels (approx. 82 MMT). The drawdown capability of these four
reserves is 4.4 million barrels per day. Therefore, at full level
of drawdown from Strategic Petroleum Reserves, the U.S. can become
the fourth largest supplier in the world. The U.S. has plan to
expand the capacity of the strategic petroleum reserves to 1000
million barrel (approx. 135 MMT). The petroleum is stored in salt
caverns. U.S. Department of Energy offered to support any industry
expertise required by India to create its own strategic petroleum
reserves. Shri Naik said that as a follow up of his visit and
discussions, a technical team would visit the U.S. shortly.
