Exploration deals for 18 blocks

The government today entered into production sharing contracts (PSCs) for 18 exploration blocks under the fifth round of New Exploration Licensing Policy (NELP-V). The contracts were signed here by seven foreign and seven domestic companies which pledged to put in Rs 3,771 crore, including Rs 1,653 crore in the first phase.

The foreign companies are Birckbeck Investment Ltd. (Mauritius), Cairn Energy Plc., ENI, GeoGlobal Resources (Barbados), Hardy Exploration and Production India, Jubilant Capital Pvt Ltd and Niko Resources Ltd.

The Indian companies include Focus Energy Ltd, formerly known as Phoenix Overseas Ltd, GAIL (India) Limited, Gujarat State Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, Oil India Limited, Oil & Natural Gas Corporation Limited and Reliance Industries Limited.

The 18 blocks for which contracts were signed include six deepwater blocks, two offshore shallow water blocks and 10 onland blocks. Contract discussions were held with the companies in August 2005 and agreements were reached resulting in finalization and signing of the PSCs for these blocks.

Contracts for two remaining blocks "" AA-ONN-2003/1 (Assam) and AA-ONN-2003/2 (Arunachal Pradesh) "" are expected to be announced shortly.

Speaking to reporters on the sidelines, Reliance Industries Ltd president and chief executive officer of petroleum business P M S Prasad said the company's refinery would be expanded to 60 million tonne from 33 mt by 2008-09. The US-based Bechtel Corporation. is likely to get the engineering, procurement and construction contract for the refinery expansion, he said.

"A formal announcement on the EPC (engineering, procurement and construction) contract is likely to be made in the first week of October," he said. The planned expansion is predominantly for enhancing exports of oil products.