Reliance, ONGC Sign Agreements for Exploration Licenses

Today ONGC and Reliance Industries signed license agreements for the exploration blocks awarded to them by the government under NELP-III.

ONGC signed Production Sharing Contract (PSC) for 13 blocks while RIL, in consortium with Hardy Oil of UK, inked agreements for nine blocks including 7 prime deepwater blocks.

Minimum committed investment in the first exploratory phase in 23 blocks, agreements for which were signed on Tuesday, would be around $415 million, Petroleum Minister Ram Naik said. A total of $1.05 billion investment has been committed in three phases of exploration and production in all the 23 blocks, he said.

ONGC signed for 9 blocks. Three of those were in cooperation with Oil India Ltd and one was in cooperation with Indian Oil Corp.

Gujarat State Petroleum Corporation, in consortium with Geo Global Resources (India) Ltd and Jubiliant Enpro India Ltd, also signed a contract for the KG-OSN-2001/3 offshore blocks in Krishna Godavari Basin.

Naik said the fourth round of NELP would be announced by first week of April. Under NELP-I, of the 1.1 billion dollars investment committed under NELP-I, $423 million has already been invested while of the $775 million committed in NELP-II $111 million has been invested in exploration. With this, the Government has awarded in all 70 blocks in three rounds of NELP as against 22 blocks awarded in last 10 years.