OIL to sign agreement for NELP-VI blocks in March

New Delhi, Feb 19: State-owned Oil India Ltd (OIL) is expected to sign a production sharing agreement next month for the recently bagged eight blocks under the sixth round of NELP.

OIL will be operator for six onshore blocks and non-operator in two deep water blocks.

The blocks in which OIL has a majority stake include MZ-ONN-2004/1 in Mizoram, AA-ONN-2004/1 and AA-ONN-2004/2 in Asom, RJ-ONN-2004/2 and RJ-ONN-2004/3 in Rajasthan and KG-ONN-2004/1 in the Krishna-Godavari basin.

The blocks awarded to the company as a non-operator are KG-DWN-2004/5 and KG-DWN-2004/6.

OIL was awarded 14 blocks in fifth round of NELP. With the award of NELP-VI blocks, it will have 22 blocks and will double its operatorship from 6 to 12 blocks.

In addition, the company has also acquired participating interest in two blocks in Yemen and one block each in Nigeria and Gabon.

ONGC bagged 24 of the 52 oil and gas blocks cleared by the Cabinet Committee on Economic Affairs (CCEA) under NELP-VI. Of the 24 blocks, 12 are deep water, 10 on land and two in shallow water.

Reliance Industries received seven deep water blocks while Gujarat State Petroleum Corporation got three blocks.

In the initial five years from 2007 to 2012 the winners are expected to invest over six billion dollars.

UNI