Government extends bid date for oil blocks under NELP-VII to May 16
18 Apr 2008
Mumbai: The government has extended the deadline for submitting final bids for its latest and largest licensing round for oil and gas blocks under the New Exploration Policy – NELP-VII - by three weeks to May 16.
The petroleum ministry is auctioning 57 oil and gas blocks under the seventh round of the New Exploration and Licensing Policy
This has been done to give time for the finance ministry to clarify on tax proposals unveiled for the energy sector in the latest budget, the petroleum ministry said.
This is the second time the government is postponing the bid date, after the original bid submission deadline of April 11 was postponed to April 25 to ensure that the delayed roadshows in Singapore were completed.
The deadline has been postponed to allow time for the finance ministry to clarify its position on the proposed withdrawal of seven-year income tax holiday on oil and gas production.
The petroleum ministry had promised a seven-year tax holiday on oil and gas production while marketing its NELP auctions around the world.
Domestic oil companies welcomed the postponement of the deadline as it would give them more time to decide on tie-ups with foreign oil majors for bidding.
NELP-VII proposes to give more weightage to companies which have experience of producing oil and gas from deepwater areas.
None of the Indian oil majors, including ONGC and Reliance Industries, have experience of producing oil and gas from deepwater blocks. They will have to tie up with overseas oil majors to bid for 19 such blocks being offered under NELP-VII.
