ONGC commits $1bn for blocks

Upstream oil major Oil and Natural Gas Corporation (ONGC) and its partners have indicated an investment of over $1 billion in the three phases of exploration for oil and gas in the 14 blocks they have been awarded in the fourth round of bidding under the New Exploration Licensing Policy (NELP-IV).

Of the $1,003 million indicative investment, ONGC's share will be around $890 million, Chairman and Managing Director Subir Raha told newsmen on the sidelines of the production sharing contract signing ceremony here today.

ONGC and its partners Oil India Limited, BPCL and HPCL have committed a minimum investment of $ 412 million in the mandatory first phase of exploration in the blocks awarded to them. Out of this, ONGC's share will be $ 360 million.

Investment in the second and third phases of exploration depends on results of the first phase and ONGC may decide to abandon any block and not make further investment if commercial quantities of oil and gas is not discovered.