Subscription accessNELP VIII Round and Fourth Coal Bed Methane Round launched
On 8 August 2009, the Indian Ministry of Petroleum & Natural Gas (MOP&NG) launched the Eighth Round of New Exploration Licensing Policy (NELP) and Fourth Round of Coal Bed Methane (CBM-IV).
Under the CBM IV round, 10 blocks covering an area of 5,040 square kilometres in six states are on offer.
|
Fourth Round
of Coal Bed Methane (CBM) |
||
|
Coal Field |
Block Name |
Area (sq km) |
|
Raj Mahal |
RM(E)-CBM-2008/IV |
1128 |
|
Talchir |
TL-CBM-2008/IV |
557 |
|
Ib Valley |
IB-CBM-2008/IV |
209 |
|
Singrauli |
SR(W)-CBM-2008/IV |
269 |
|
Sohagpur |
SP(NE)-CBM-2008/IV |
339 |
|
Satpura |
ST-CBM-2008/IV |
714 |
|
North East |
AS-CBM-2008/IV |
113 |
|
Wardha |
WD(N)-CBM-2008/IV |
442 |
|
Wardha |
WD(E)-CBM-2008/IV |
503 |
|
Mannargudi |
MG-CBM-2008/IV |
766 |
Under the NELP VIII Round, 70 exploration blocks covering an area of 163,535 square kilometres in 11 sedimentary basins are on offer. Of these 70 blocks, 24 are located in deep waters (>400 metres), 28 are located in shallow waters and 18 are onshore blocks.
|
Eighth Round of New Exploration Licensing Policy (NELP VIII) |
|||
|
Block Name |
Basin Name |
Area (sq km) |
|
|
AA-ONN-2009/1 |
|
2217 |
|
|
AA-ONN-2009/2 |
|
1740 |
|
|
AA-ONN-2009/3 |
|
84 |
|
|
AA-ONN-2009/4 |
|
84 |
|
|
AN-DWN-2009/1 |
ANDAMAN |
4981 |
|
|
AN-DWN-2009/10 |
ANDAMAN |
4014 |
|
|
AN-DWN-2009/11 |
ANDAMAN |
4024 |
|
|
AN-DWN-2009/12 |
ANDAMAN |
4021 |
|
|
AN-DWN-2009/13 |
ANDAMAN |
4007 |
|
|
AN-DWN-2009/14 |
ANDAMAN |
4014 |
|
|
AN-DWN-2009/15 |
ANDAMAN |
3518 |
|
|
AN-DWN-2009/16 |
ANDAMAN |
3524 |
|
|
AN-DWN-2009/17 |
ANDAMAN |
4034 |
|
|
AN-DWN-2009/18 |
ANDAMAN |
4040 |
|
|
AN-DWN-2009/2 |
ANDAMAN |
3995 |
|
|
AN-DWN-2009/3 |
ANDAMAN |
3992 |
|
|
AN-DWN-2009/4 |
ANDAMAN |
3990 |
|
|
AN-DWN-2009/5 |
ANDAMAN |
4002 |
|
|
AN-DWN-2009/6 |
ANDAMAN |
3999 |
|
|
AN-DWN-2009/7 |
ANDAMAN |
4009 |
|
|
AN-DWN-2009/8 |
ANDAMAN |
4006 |
|
|
AN-DWN-2009/9 |
ANDAMAN |
4017 |
|
|
CB-ONN-2009/1 |
CAMBAY |
113 |
|
|
CB-ONN-2009/2 |
CAMBAY |
68 |
|
|
CB-ONN-2009/3 |
CAMBAY |
90 |
|
|
CB-ONN-2009/4 |
CAMBAY |
69 |
|
|
CB-ONN-2009/5 |
CAMBAY |
165 |
|
|
CB-ONN-2009/6 |
CAMBAY |
177 |
|
|
CB-ONN-2009/7 |
CAMBAY |
144 |
|
|
CB-ONN-2009/8 |
CAMBAY |
136 |
|
|
CY-OSN-2009/1 |
CAUVERY |
1362 |
|
|
CY-OSN-2009/2 |
CAUVERY |
1621 |
|
|
CY-OSN-2009/3 |
CAUVERY |
2385 |
|
|
GK-OSN-2009/1 |
GUJARAT-
|
1264 |
|
|
GK-OSN-2009/2 |
GUJARAT-
|
1242 |
|
|
HF-ONN-2009/1 |
HIMALAYAN FORELAND |
1930 |
|
|
KG-DWN-2009/1 |
KRISHNA
|
1800 |
|
|
KG-OSN-2009/1 |
KRISHNA
|
1472 |
|
|
KG-OSN-2009/2 |
KRISHNA
|
1471 |
|
|
KG-OSN-2009/3 |
KRISHNA
|
1988 |
|
|
KG-OSN-2009/4 |
KRISHNA
|
835 |
|
|
KK-DWN-2009/1 |
KERALA KONKAN |
5349 |
|
|
KK-DWN-2009/2 |
KERALA KONKAN |
5361 |
|
|
KK-DWN-2009/3 |
KERALA KONKAN |
5374 |
|
|
KK-DWN-2009/4 |
KERALA KONKAN |
5390 |
|
|
KK-OSN-2009/1 |
KERALA KONKAN |
2004 |
|
|
KK-OSN-2009/2 |
KERALA KONKAN |
1860 |
|
|
KK-OSN-2009/3 |
KERALA KONKAN |
1874 |
|
|
KK-OSN-2009/4 |
KERALA KONKAN |
2475 |
|
|
KK-OSN-2009/5 |
KERALA KONKAN |
2088 |
|
|
KK-OSN-2009/6 |
KERALA KONKAN |
2107 |
|
|
KK-OSN-2009/7 |
KERALA KONKAN |
1914 |
|
|
KK-OSN-2009/8 |
KERALA KONKAN |
2295 |
|
|
KK-OSN-2009/9 |
KERALA KONKAN |
2032 |
|
|
MB-DWN-2009/1 |
MUMBAI |
2961 |
|
|
MB-OSN-2009/1 |
MUMBAI |
2299 |
|
|
MB-OSN-2009/2 |
MUMBAI |
1635 |
|
|
MB-OSN-2009/3 |
MUMBAI |
1492 |
|
|
MB-OSN-2009/4 |
MUMBAI |
1309 |
|
|
MB-OSN-2009/5 |
MUMBAI |
1477 |
|
|
MB-OSN-2009/6 |
MUMBAI |
1876 |
|
|
MB-OSN-2009/7 |
MUMBAI |
1865 |
|
|
VN-ONN-2009/1 |
VINDHYAN |
1405 |
|
|
VN-ONN-2009/2 |
VINDHYAN |
1562 |
|
|
VN-ONN-2009/3 |
VINDHYAN |
1250 |
|
|
WB-ONN-2009/1 |
|
1519 |
|
|
WB-ONN-2009/2 |
|
1887 |
|
|
WB-OSN-2009/1 |
|
2621 |
|
|
WB-OSN-2009/2 |
|
1915 |
|
|
WB-OSN-2009/3 |
|
1695 |
|
Map:
Blocks offered under the Eighth
Round of the New Exploration
Licensing Policy (red shading).
Source:
PetroView®
Roadshows for the NELP VII and CBM IV rounds will be held on 8 August in Mumbai (India), 20-21 August in Houston (USA), 24-25 August in Calgary (Canada), 8-9 September in London (UK), 22 September in Perth (Australia), and 24-25 September in Brisbane (Australia). The licensing round was initially launched on 9 April 2009.
Data packages for the NELP and CBM blocks can be purchased directly from Directorate General of Hydrocarbons (DGH). Companies are required to submit their bids by 12 October 2009. Bid documents and further details of the round are available from the NELP VIII website (http://www.indianelpviii.com/).
The Policy for Coal Bed Methane (CBM) was formulated in 1997 and a model contract and bid documents were drafted in 1998. The prospective blocks were carved in 1999-2000 and the first CBM round was launched in May 2001. To date, three rounds have been completed with the latest round announced in April 2009.
Highlights of some of the terms of the CBM policy are:
- no participating interest of the Government;
- no signature bonus;
- an option to walk out at the end of Phase 1 and 2;
- freedom to sell gas in the domestic market at a market determined price; and
- an income tax holiday for seven years from the start of commercial production.
After three rounds of CBM bidding, 26 blocks covering an area of 13,600 square kilometres have been awarded and the first commercial production from CBM commenced from 14 July 2007.
The New Exploration Licensing Policy (NELP) was formulated in 1997-1998 to boost hydrocarbons exploration in the country by providing a level playing field where exploration licenses would be granted through international competitive basis to foreign and national oil companies.
NELP was first implemented in January 1999 and to date, seven rounds have been completed with the Eighth Round launched in April 2009.
Some of the salient features of the NELP include:
- Freedom for operators to market crude oil and gas in the domestic market at market determined price;
- up to 100% participation by foreign companies;
- no signature, discovery or production bonus;
-
income tax
- no mandatory state participation; and
- biddable cost recovery limit of up to 100%.
Under NELP, 203 production sharing contracts have been signed and multiple players are operating in Indian sedimentary basins. The area under exploration has increased more than four times from 0.35 million square kilometres in 2000 to 1.50 million square kilometres in 2009 with 70 hydrocarbon discoveries.
An issue of contention under NELP VIII is the applicability of a tax holiday to commercial production of natural gas. In the Union budget of 2008-09, the finance ministry defined “mineral oil” for the purpose of Section 80 IB (9) of Income Tax Act, 1961 to exclude natural gas. This meant that the tax holiday, one of the salient features under NELP, was only for crude oil production and not natural gas, contrary to the Government’s commitment while attracting investment under NELP.
In the Union Budget of 2009-10, the finance ministry clarified that the tax holiday available in respect of profits arising from the commercial production or refining of mineral oil, will be extended to natural gas. This tax benefit will be available to undertakings in respect of profits derived from the commercial production of mineral oil and natural gas from oil and gas blocks which are awarded under the NELP-VIII round of bidding.