Industry & Economy
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Petroleum
Seventh round of NELP may be deferred
Our Bureau
New Delhi, Aug. 3 The seventh round of oil and gas blocks auction, which was expected this month, is likely to be postponed to the last quarter of this year, by November. Rig shortage and the unresolved issue of gas price have been cited as a reason for this.
Sources told Business Line, if the decision of gas pricing is resolved earlier, the Government can even think of offering the blocks in October.
Blocks on offer
The Government is planning to offer close to 80 blocks, including deepwater blocks, thus, putting to an end all apprehensions that prevailing rig shortage may compel the Government to bring down the numbers of block being put on offer, particularly deepwater blocks.
Surge in global oil prices has led to increase in demands for rigs, drilling equipment and services. The situation is expected to ease in 2009 with the commissioning of new rigs. If the seventh round of New Exploration Licensing Policy (NELP) is launched in October, the blocks will be awarded by June next year, which will give the companies enough time by when the rig shortage situation is expected to ease, sources explained.
The issue of gas pricing formula, which is to set the benchmark for future gas prices from the region, is yet to be decided.
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