CCI urges to resolve stalemate at 39 exploration blocks: Panabaaka Lakshmi

The cabinet committee on investments ( CCI) has directed PM's principal secretary and national security advisor to find amicable solution to contentious issues between defense and petroleum ministries affecting exploration works in 39 blocks where investors already spent over $13 billion, minister of state for petroleum & natural gas Panabaaka Lakshmi told the parliament.

"CCI meetings are being held to resolve the issue of ministry of defence (MoD) placing restrictions on exploration and development activities in respect of 39 exploration blocks in offshore areas including Krishna-Godavari and Mahanadi basins, subsequent to the grant of petroleum exploration license (PEL), she said in a statement.

MoD has placed restrictions on account of strategic and security related considerations. These blocks were awarded to different energy firms in various bidding rounds of new exploration licensing policy ( Nelp), she said.

She said that the matter was "discussed by CCI in its meeting held on Jan 30. The CCI has directed principal secretary to the Prime Minister and national security advisor to further discuss the issue with MoP&NG ( oil ministry) and MoD and apprise progress to CCI in a month's time," she said.

As on March 31, 2012 an investment worth $13.28 Billion had been made by the contractors for carrying out exploration and development activities in the 39 affected blocks, she said.