Auction of oil and gas blocks fetches India $1.1 billion
01 Jul 2010
New Delhi: A total of twenty companies have committed some $1.1 billion in investment to look for oil and gas in 31 exploration blocks in India's latest energy auction round, a government statement said Wednesday. The amount, however, fell somewhat short of government expectations.
However, the government said it expects the response to be much more enthusiastic in the next round of auctions thanks to the de-regulation of oil prices last week.
India imports 75 per cent of its crude oil needs and has been seeking to increase exploration of its natural resources in a bid to lessen import bills and also meet needs of its fast growing economy.
India put 70 blocks up for offer in the eighth round of the New Exploration Licensing Policy (NELP). The NELP was launched in 1999 to accelerate development of India's energy resources.
"Considering the (weak) global economic situation, the committed investment of 1.1 billion dollars... by these companies is notable," said petroleum minister Murli Deora.
The auction did not spark much enthusiasm amongst global energy giants and most blocks were taken by local companies, such as state-owned Oil and Natural Gas Corp.
