Nina M. Rach
Drilling Editor
HOUSTON, Nov. 16 -- India's Dir. Gen. of Hydrocarbons V.K. Sibal confirmed at a meeting in New Delhi that the upcoming new exploration licensing policy (NELP) round would likely be the last as India moves toward a more-transparent open acreage nomination system.
Sibal told OGJ that NELP VI probably will commence in late January or early February 2006. NELP I began in January 1999.
NELP VI will offer about 50 blocks of mixed size equally distributed between onshore and offshore.
Sibal wants to attract a more diverse group of exploration companies and is therefore offering incentives for participation in smaller blocks.
"Previously, the blocks on offer were too large" to properly explore, Sibal said. They ranged in size from 500 sq km to 20,000-30,000 sq km.
Changes in the upcoming NELP-VI from previous rounds include:
--Block sizes as small as 16 sq km.
--Phase 1 work commitment to include 2D seismic surveys but no minimum drilling commitment.
--Reapportioning phased work commitments to eliminate front-loading of costs.
--Designated coalbed methane acreage.
As in previous NELP rounds, India has not stipulated any up-front bonuses. A new opportunity for companies to nominate open acreage in India will be announced during NELP VI. Sibal said bidding on open acreage will likely to begin in December 2006.
His agency again plans a multicity road show to introduce NELP VI. It began conducting road shows prior to NELP IV, in June 2003, visiting London, Calgary, Houston, and Perth.
In the pre-NELP V road shows in January-February 2005, the agency added Dubai and Moscow. For NELP VI, Sibal said the list of cities would probably be expanded to include Aberdeen and perhaps Denver.
Contact Nina M. Rach at [email protected].
