India May Offer 68 Oil, Gas Blocks for Exploration This Year

India may offer as many as 68 oil and gas blocks for exploration in the 10th round of New Exploration Licensing Policy (NELP) this year.

Of the blocks being considered for offering in NELP-X, 25 are deep water, 20 shallow water and 23 onshore blocks, Press Trust of India reported.

NELP-X is likely to be held on new terms wherein a bidder shall be asked to quote the amount of oil or gas output it is willing to offer to the government from the first day of production, PTI added. The company offering the highest share of oil or gas produced from the field would get the block.

Currently, oil companies are allowed to first recover the entire cost of exploration and production and only then share the profit with the government.

This approach had been criticised by the Comptroller and Auditor General of India (CAG) as it encouraged companies to delay government getting larger share by increasing capex.

Sources told Press Trust of India that the Directorate General of Hydrocarbons (DGH) and the Oil Ministry are in the process of getting various clearances for offering the blocks.