Govt to ONGC rescue, to hold 12 NELP-VI blocks

An Empowered Committee of Secretaries (ECS) today over-ruled recommendations of Director General of Hydrocarbons (DGH) on exploration blocks under the New Exploration Licensing Policy (NELP) -VI, and favoured allotting 12 blocks to ONGC.

DGH, in its recommendations for award of blocks offered in the sixth round of auction under NELP, had opined against awarding 12 deep sea blocks to ONGC due to its "poor" track record.

The ECS, comprising officials from the ministries of petroleum, finance and law, did not agree with its suggestions, official sources said.

The consortium of ONGC-GSPC-HPCL-GAIL was a clear winner in 11 deep-sea blocks while the ONGC-Cairn India-Tata consortium was ranked number one in a Kerala-Konkan basin block.

DGH was against awarding the blocks to the consortium, and recommended "award by negotiations to an international company." DGH had also suggested that Reliance Industries, the second highest bidder in most of these blocks, should be given these contracts.

Sources said the oil ministry opposed the DGH recommendations on ONGC saying if a company was qualified to bid and had bid the highest it should be awarded the block.

Of the 21 deep sea block offered in NELP-VI, Reliance had emerged clear winner in seven - two in Krishna Godavari basin and five in Mahanadi basin. Santos was recommended award for two North-East-Coast (NEC) blocks.

Of the six shallow water blocks, one each has been recommended for ONGC, Focus Energy, Cairn-ONGC-Tata and ONGC-BG while two blocks have been suggested for the consortia of GSPC-IOC-GAIL-HPCL-Petrogas.

See: RIL set to bag 7 prized oil blocks