Speaking at the Signing ceremony of NELP Blocks here today, Shri Murli Deora, Minister of Petroleum & Natural Gas informed that 17 blocks are awarded to National oil companies, viz., ONGC, Oil India Ltd. and NTPC and 14 exploration blocks to Private/Joint Venture and foreign companies. Considering the global economic situation, the committed investment of US$1.1 billion in NELP-VIII blocks by these companies is notable, he added. The actual total investment made under the earlier NELP rounds stands at US $ 13.8 billion.

The Minister advised the E&P companies for making adequate efforts to explore oil and gas in the country in an expeditious and effective manner and to bring in their best skills, technology and management practices in India.

Speaking on future hydrocarbon exploration programme in the country, Shri Deora highlighted that:

i) Government's endeavour is to launch ninth round of NELP in the third quarter of 2010 and invited all E&P companies to offer their valuable suggestions on NELP IX round.

ii) Government's intention is to move to the Open Acreage Licensing Policy (OALP) regime as soon as possible. Under this policy, companies can suggest any block for offer at any time, without waiting for the regular bid rounds under NELP. The blocks will be awarded to the party giving the best bid.

iii) Government's intention and endeavour is to put in place a policy framework for effective exploration and production of shale gas in about a year's time.

Shri Deora assured the investors that the Government have been pro-actively supporting and facilitating investments in E&P sector and will continue to do so.

The signing ceremony of NELP blocks was graced by Dr. M. Veerappa Moily, Minister of Law & Justice and Shri Jitin Prasada, State Minister of Petroleum & Natural gas.

Dr. Moily praising the NELP terms commented that Article on Arbitration in PSCs has well drafted provisions which provides companies to sort out any dispute amicably. NELP PSC provides for a liberalized framework of investment.

The Minister of State for Petroleum and Natural Gas, Shri Jitin Prasada in his address advised E&P companies for adopting environment friendly technologies in exploration and learn the lessons fast from the incidents such as oil spills in the Gulf of Mexico.

Government has signed 31 Production Sharing Contracts for 8 deepwater blocks, 11 shallow water offshore blocks and 12 onland blocks which are in the states of Assam (2), Gujarat (8), Madhya Pradesh (1) and Manipur (1).

Eleven companies viz, Bengal Energy International Inc., BHP Billiton Petroleum International Exploration Pvt. Ltd., BG Exploration and Production India Ltd., Cairn Energy India Pty. Ltd., Esveegee Steel Gujarat Pvt. Ltd., Harish Chandra (INDIA) Ltd., Jubilant Oil & Gas Pvt. Ltd, Jay Polychem (India) Ltd., NTPC, OIL and ONGC have signed Production Sharing Contracts with the Government.

In addition, 9 companies which have participating interest with operating companies in exploration blocks are: Adani Welspun Exploration Ltd., Andhra Pradesh Gas Infrastructure Corporation Pvt. Ltd., Cairn India Ltd., GAIL, GSPC, IOC, Jay Polychem (Pte) Ltd., Jubilant Energy (Kharsang) Pvt. Ltd. and Jubilant Offshore Drilling Pvt. Ltd.

The signing ceremony was attended by the High commissioners/ Ambassadors from foreign missions, the Government officials, and other dignitaries, CEOs, delegates/representative of National Oil Companies, foreign companies and Indian Private companies. A total of about 450 representatives witnessed the signing ceremony of NELP VIII blocks.