India allots 90 oil, gas blocks under NELP

NEW DELHI, Aug. 23 (UPI) -- India says it has awarded 90 oil and gas blocks under the first four rounds of the new exploration licensing policy.

“Totally, 90 oil and gas exploration blocks have been awarded under the first four rounds of new exploration licensing policy. (An additional) ... 72 blocks have been contracted in the fifth and sixth rounds of NELP bidding,” the Petroleum and Natural Gas Ministry said in a statement Thursday.

Junior Minister Dinsha Patel said that under NELP, the blocks are contracted for exploration activities for a period of seven to eight years, during which the operator completes exploration work.

Patel said the time taken for oil and gas discoveries to reach production is between three and eight years depending on the location of the discovery, availability of infrastructure and markets in and around the discovery area.

Under NELP, 43 oil and gas block discoveries have been made.

In Gujarat, 300,000 cubic meters of gas per day is being provided from one block operated by Niko Resources, the minister said.

“In another block, which state-run Gujarat State Petroleum Corp. operates, crude oil of the order of 500 barrels per day has started from July 2007 onward. Gas production of 30 million metric standard cubic meters per day from the Krishna-Godavari basin off the Andhra coast is likely to commence in July next year with peak production of 80 mmscmd,” the minister said.