India opens auction of 70 areas for oil, natural gas exploration

Apr 9, 2009, 9:29 GMT

   New Delhi - The Indian government Thursday launched its biggest ever auction of oil exploration blocks even as global energy producers are cutting investments due to the economic slowdown.

   The government was offering 70 areas for exploration of oil and natural gas, RS Pandey, the secretary of the Petroleum and Natural Gas Ministry, said at a press briefing in the Indian capital.

   The areas include 24 deep-water blocks and 28 shallow-water blocks off India's western and eastern shores and 18 land blocks.

   The auction will be held in two phases and bids for the 70 fields offered in the first phase will close on August 10, Pandey said.

   The Indian government has awarded 212 oil and gas blocks so far to oil exploration and producing companies under its New Exploration Licensing Policy (NELP) introduced in 1999.

   Pandey said at least 10 billion dollars had been invested in oil exploration in India since the NLEP was first launched.

   India's Reliance Industries Limited started producing gas from an offshore field earlier in April. The government is hoping this will encourage global energy companies to bid for the new fields on offer.

   India, one of the world's fastest growing economies, imports nearly 70 per cent of its oil and gas. The investment on domestic exploration and production is aimed at reducing import costs.