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Ministry to launch NELP-10 in 2014

Friday, 27 Sep 2013
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Ministry of Petroleum and Natural Gas will launch the 10th round of the new exploration licensing policy (NELP) auction of oil and gas blocks in January 2014.

In the 10th round, the ministry intends to offer 68 oil and gas blocks for exploration. The new policy will be free from obstructions facing exploration and production. Of the blocks being considered for offering in NELP-10, 25 are deep water, 20 shallow water and 23 onland blocks. The NELP-10 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.

The company offering the highest share of oil or gas produced from the field will get the block. The Ministry of Petroleum and Natural Gas, and Directorate General of Hydrocarbons (DGH), are in the process of getting various clearances for offering the blocks.

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


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