Question : PRIVATE PARTNERSHIP IN EXPLORATION PROJECTS



(a) whether the Government is encouraging private partnership in oil and gas exploration projects;

(b) if so, the details thereof including Andhra Pradesh;

(c) whether there is some disagreement between some State Governments and the Union Government regarding consumption of extracted products; and

(d) if so, the details thereof alongwith the measures being taken by the Union Government to settle these issues?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI R.P.N.SINGH)

(a) & (b). Yes, Madam. the Government of India formulated New Exploration Licensing Policy (NELP) during 1997 to provide a level playing field to both public and private sector companies in exploration and exploitation of hydrocarbon resources in the country. Under the NELP policy, any company, Private, Foreign or Public Sector Undertaking, can bid for the exploration blocks offered through International Competitive Bidding, with participating Interest (P.I), upto the extent of 100%.

Out of 248 exploration blocks awarded so far under nine rounds of NELP, 68 blocks were awarded to Private Companies, and 39 blocks to Foreign Companies, as Operators.

As far as the State of Andhra Pradesh is concerned, so far, 1 exploration block, namely, KG-ONN-2003/1 has been awarded under NELP-V round to a Foreign company, M/s Cairn Energy India Limited as Operator with 49% Participating Interest and Oil and Natural Gas Corporation Ltd as Consortium Partner with 51% Participating Interest.

(c) . No, Madam.

(d). Does not arise in view of (c) above.