Govt rejects ONGC’s tie-up plans with BG, BP

NEW DELHI: The petroleum ministry has rejected ONGC’s proposals for strategic tie-ups with British Gas (BG) and British Petroleum (BP) in the three KG basin blocks and one block in the Gujarat-Kutch basin, respectively. The ministry maintained its earlier stand on the issue despite a last minute effort by the UK prime minister who had requested his Indian counterpart to re-consider the proposal. Instead, it has decided to club these block under the seventh round of New Exploration Licensing Policy (NELP-VII).

Petroleum exploration licences (PELs), granted to ONGC for three blocks in the KG basin (KG-OS-DW-III, KG-OS-DW-Extn- and KG-OS-DW), will expire in May 2007. As no success has been achieved in exploring hydrocarbon by ONGC in the three blocks, the ministry decided to put the block under NELP-VII, which is expected to be announced during April-May 2007, ministry officials said.

In 2000, the government had granted six deepwater blocks to ONGC on nomination basis. Even as the six blocks were on nomination basis — three located on the east coast in the KG basin, two on the west coast in Kerala-Konkan basin, and one block in west coast of Gujarat’s Kutch basin — ONGC enjoyed NELP terms for them.

The government had also permitted the company to join hands with experienced exploration & production (E&P) companies, subject to the approval of the empowered committee of secretaries (ECS).