ONGC Ropes In ENI, BG, Norsk For NELP-VII Bid

MUMBAI: India’s biggest oil producer Oil and Natural Gas Corporation (ONGC) has teamed up with European majors to jointly bid for the next round of National Exploration and Licensing Policy (NELP). The state-owned oil company has roped in ENI of Italy, British major BG and Norwegian firm Norsk Hydro to jointly bid aggressively for deep and ultra deep water blocks and shallow water blocks in the seventh round of NELP bidding, said sources close to the development.

“They have proven technologies in deep water drilling and we seek their expertise. The potential of India’s East Coast is well established with the recent gas discoveries by Reliance, GSPC and ONGC,” said a senior ONGC official. ONGC has tried to rope in others like the US major Chevron Corp for the bidding, but did not get a very encouraging response from the global major.

This year, the government has for the first time given additional weight to domestic companies that tie up with global corporations with experience in deep-sea oil and gas exploration. The move is aimed at attracting more global oil giants to bid under NELP - VII. In its largest auction so far, offering 57 blocks, the government hopes to attract investment commitments of up to $3.5-$4 billion.

Of the 57 oil and gas blocks, nine are in shallow water, 19 in deep sea and 29 on-land. Bidding for NELP-VII will close on April 11, 2008, and the entire process is expected to be completed within six months Global oil majors such as Exxon-Mobil, Chevron and Royal Dutch Shell have been absent in the earlier rounds.

British Gas is the only significant oil company to have acquired blocks. ONGC has traditionally bagged the largest number of blocks offered during the sixth round of NELP bidding.

Meanwhile, Norsk Hydo already has a presence in India through a participating interest ONGC’s KG basin block, where the company says it has discovered gas. ENI too has bagged a couple of exploration blocks in India in association with ONGC and Cairn India.