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India expects over $7 bn from oil & gas auction

The total investment under the sixth round of NELP-VI would be much more in comparison to $1.7-2 billion of NELP-V.

india Updated: Apr 11, 2006 15:06 IST

India expects over $7 billion investment in oil and gas exploration through the latest auction of blocks and hopes to produce 20 million standard cubic metres of gas from coal seams from next year.

"We hope that all 55 blocks will be snapped up. We expect over $7 billion investment within 24 months," Petroleum and Natural Gas Minister Murli Deora told reporters.

He said the total investment under the sixth round of New Exploration Licensing Policy (NELP-VI) would be much more in comparison to $1.7-2 billion investment under NELP-V.

"We expect a production of 20 million cubic metres of gas per day from next year from Coal Bed Methane blocks, which is 3.5 million tonnes of oil equivalent," Petroleum Secretary MS Srinivasan said.

The first round of NELP would commence production from 2007, he said, adding that "reserves of 650 mmt of oil and oil equivalent gas have been established in last five years".

The minister has recently concluded a highly successful visit to London, Houston and Washington to promote oil and gas blocks under NELP-VI and third round of CBM policy.

"We have already sold data worth Rs 40 crore to oil companies worldwide. We will collect about Rs 100 crore by selling data only," Deora said, adding that the positive response from bidders was evident from the sale of data.

The bids for the CBM round will be received by June 30 while those of NELP-VI by September 15, 2006.

First Published: Apr 11, 2006 15:06 IST