Govt to woo global oil majors for Nelp auction

India is planning to attract investment commitments of $7-8 billion in the oil and gas sector in the seventh round of the New Exploration and Licensing Policy (Nelp VII) auctions.

This time, the Ministry of Petroleum and Natural Gas is planning to attract global oil majors, which have kept away from the earlier six rounds. The earlier rounds have attracted over $8 billion.

Speaking at the Nelp VII roadshow in Mumbai, Petroleum and Natural Gas Minister Murli Deora said, "We are making every possible attempt to get international oil majors to the country."

While he refused to divulge names, he confirmed that steel baron LN Mittal had expressed interest in taking part in the auction.

The largest auction so far, NELP VII covers 57 blocks "" nine in shallow water, 19 in deep waters and 29 onshore.

The ministry is keen to attract big oil as the domestic companies do not have the technology to search for hydrocarbons in deep waters and remote regions. Petroleum Secretary MS Srinivasan said: "The crude prices may soar to $150 a barrel in the next two-three years. Considering this, we are putting in more efforts in our exploration and production."

Director General of Hydrocarbons VK Sibal, who is overseeing the auction, said, "We want international players to get technology for deepwater acreage and explore for oil and gas in the country."

India had opened 165 areas for exploration in the previous rounds. Of these, 49 blocks yielded oil and gas.

The last date for receiving the bids for Nelp VII is April 11.

The companies that have expressed an interest include Reliance Industries, Oil and Natural Gas Corporation, Cairn India, British Gas and Oil India.

Cairn India, which has so far discovered 40 oil and gas fields, plans to bid for more exploration areas and develop strategic partnerships, according to CEO Rahul Dhir.

While Oil India has joined hands with British Gas, an Oil India executive said they were looking at other partners too.