The Hindu Business Line : NTPC exploring tie-ups with oil PSUs for NELP-VIII bid

As a step in this direction, the power major is looking to tie-up with public sector oil companies, including Indian Oil Corporation (IOC), to jointly bid for the oil and gas blocks put on offer under the eighth round of the New Exploration Licensing Policy (NELP-VIII).

The company has already written to IOC to explore the possibility of striking a partnership and is also looking at tie-ups with other companies, company sources said. The country’s largest power producer had bagged its maiden oil exploration block in 2005 under NELP-V.

“We had earlier decided to go slow on gas-based capacity addition due to fuel uncertainty. But with prospects looking up after the recent finds, we are planning to build more gas-based stations. We will be participating in the eighth round of oil and gas block auctions,” an NTPC official said.

Arunachal project

Under the NELP regime, significant natural gas production in the Krishna-Godavari Basin began from April. With this, the gas production in India would double from 2008-09 levels.

Currently, NTPC is actively working on the exploration block in Arunachal Pradesh bagged underNELP-V.

NTPC has total installed capacity of 30,644 MW. It has seven gas-based power stations with a cumulative capacity of about 3,955 MW.

To operate this capacity, the company requires 15-16 mcmd (million cubic metres a day) of gas.

In 2008-09, NTPC received 10.74 mcmd of gas against 11.76 mcmd the previous fiscal.

This included 1.99 mcmd of spot R-LNG received in 2008-09, against 2.77 mcmd during the previous year, a company official said. NTPC’s gas-run power stations operated at a PLF (plant load factor) of 67.01 per cent in 2008-09 against 68.14 per cent the previous fiscal.

Under NELP-VIII, the Government has put on offer 70 exploration blocks. The bid closing date for the eighth round is October 12.

Future prospects

The recent huge discoveries have significantly changed the perceptions about the geological prospects of the country’s sedimentary basin.

NELP-VIII is being offered in the backdrop of 71 oil and gas discoveries made in 21 exploration blocks.

Companies such as BG India, BHP Billiton, BP, ConocoPhillips, ExxonMobil, OAO Gazprom, ONGC, Reliance Industries, GAIL (India), and IOC have evinced interest in exploring for hydrocarbons.

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More Stories on : Power | Alliances & Joint Ventures | Petroleum | NTPC Ltd

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