ECS overrules DGH recommendations on NELP blocks | Latest News India - Hindustan Times
close_game
close_game

ECS overrules DGH recommendations on NELP blocks

None | ByPress Trust of India, New Delhi
Nov 23, 2006 06:47 PM IST

The Empowered Committee of Secretaries reasoned that if a company was qualified to bid and had bid the highest, it should be awarded the block.

An Empowered Committee of Secretaries on Thursday overruled recommendations of upstream regulator Directorate General of Hydrocarbons (DGH) on award of exploration blocks under NELP-VI and favoured allotting 12 blocks to state-run oil firm ONGC.

HT Image
HT Image

The DGH in its recommendation for award of blocks offered in the sixth round of auction under the New Exploration Licensing Policy (NLEP) had opined against awarding 12 deep sea blocks to ONGC due to its "poor" track record.

Hindustan Times - your fastest source for breaking news! Read now.

However, the ECS, comprising officials from the ministries of petroleum, finance and law, did not agree with its suggestions, official sources said.

The consortium of ONGC-GSPC-HPCL-GAIL was clear winner in 11 deep sea blocks while ONGC-Cairn India Ltd-Tata were ranked number one in a Kerala-Konkan basin block. But DGH was against award of the blocks to the consortium and recommended "award by negotiations to an international company."

DGH had also suggested that Reliance Industries Ltd, the second highest bidder in most of these blocks, should be given these contracts.

Sources said the oil ministry opposed DGH recommendations on ONGC, saying if a company was qualified to bid and had bid the highest, it should be awarded the block.

Of the 21 deep sea block offered in NELP-VI, Reliance had emerged clear winner in seven - two in Krishna Godavari basin and five in Mahanadi basin. Santos was recommended award for two North-East-Coast (NEC) blocks.

Of the six shallow water blocks, one each has been recommended for ONGC, Focus Energy, Cairn-ONGC-Tata and ONGC-BG while two blocks have been suggested for the consortia of GSPC-IOC-GAIL-HPCL-Petrogas.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On