State-run firms dominate exploration round, govt sees $600 mn investment
State-run Indian companies have won operating rights for almost half of the 16 blocks awarded under the country's ninth exploration licensing round, a government statement said, with foreign firms yet again hardly in evidence.
The awards were initially approved by the cabinet last week, but details were pending.
India's upstream regulator hopes to get an investment of $600 million in the ninth exploration licensing round, its Director General S. K. Srivastava said on Wednesday.
ONGC got operating rights for four blocks -- one alone and three as part of a group -- while a consortium led by Oil India won two blocks. Gail India Ltd led a consortium that was awarded one onshore block in the Cambay basin.
Deep Energy, a subsidiary of Deep Industries which is based in the United States, in a consortium with other companies has got operatorship of three onshore blocks.
Asia's third-largest economy needs private capital for exploration, and is encouraging local firms to buy stakes in foreign oil and gas projects to meet its surging energy needs.
But India has failed to woo global players in its oil and gas exploration licensing rounds due to its dim track record of commercial discoveries and sluggish bureaucracy. Previous licensing rounds were also dominated by Indian state-run firms.
Other companies awarded blocks in the ninth round were Sankalp Oil and Natural Resources, which won three, while one block each was won by Focus Energy, Pratibha Oil and Natural Gas Pvt Ltd, and Pan India Consultants & Frost International Ltd.
India is currently producing around 763,000 barrels per day (bpd) of oil, mostly from fields awarded decades ago - less than a quarter of its 3.878 million bpd refining capacity.
India, the world's fourth-largest oil importer, imports 80 per cent of its oil needs.
COpyright Thomson Reuters 2012
