India Nelp VII - License Round Promotion

Licensing Round Information

Having been deferred on several occasions during the year, the Indian Government finally launched the Seventh Round of the New Exploration Licensing Policy (NELP VII) on 13 December 2007. A total of 57 blocks have been identified from the 80-85 blocks that were originally drawn-up - 19 deep water (>400m bathymetry), 9 shallow water and 29 onshore.

It is understood that ‘Promotional Roadshows’ will be held in Mumbai (8 January 2008), London (24-25 January 2008), Houston (28-29 January 2008), Calgary (31 January-1 February 2008), Singapore (11 February 2008) and Perth (13-14 February 2008 - tentative). Data Rooms will also be opened in New Delhi (10 January 2008), London (28 January 2008), Houston (30 January 2008), Calgary (4 February 2008) and Perth (TBA).

The licensing round is scheduled to close on 11 April 2008 and Production Sharing Contracts (PSCs) are expected to be signed within three months.

Exploration blocks have been divided into three categories on the basis of geological perception and the size of acreage offered – Type A, Type B, Type S (Small) – with specific Bid Evaluation Criteria allocated accordingly. For onshore and shallow water blocks (Type A & Type B), technical capability will be a pre-qualification criterion, whereas technical capability for onshore blocks under Type S will be neither a pre-qualification criterion nor a bid evaluation criterion - bid evaluation being based solely on work programme and fiscal package parameters in an attempt to attract small / medium-sized upstream players. For deep water blocks, technical capability will be a bid evaluation criterion. Consortium / partnership as a new sub-criterion under technical capability criterion for deep water blocks has also been introduced.

Mandatory 2D seismic is only applicable for 23 of the 57 blocks on offer and further details are available on the following website - http://www.indianelpvii.com

The licensing round was expected to have been launched in mid-August, but was deferred to early November due to gas pricing issues and a shortage of drilling rigs - the round again being deferred due to political reasons, with an announcement expected sometime after the closing of the Winter Session of Parliament on 7 December 2007. The Sixth Round of the NELP closed on 15 September 2006 and Production Sharing Contracts (PSCs) for 52 blocks were signed on 2 March 2007.

It is understood that the Government is ultimately planning to move away from the offering of exploration blocks under the NELP in favour of an Open Acreage Licensing Policy (OALP) - domestic and international oil companies able to apply for exploration acreage at any time and
not be restricted to a series of licensing round.

A pre-requisite, however, will be the creation of a National Data Repository (NDR) - a lengthy process being undertaken by the Directorate General of Hydrocarbons (DGH). In the meantime, it is anticipated there will be further offerings under the NELP mechanism.

List of blocks on offer are shown below.

Data and Reports available from IHS

IHS Studies

Indian Oil and Gas Fields Atlas and Industry Review - An extensive review of the exploration and production sector including an atlas of more than 200 oil and gas fields.

Indian Oil and Gas Industry - An extensive review of previous and current upstream activity and opportunities, with many field examples and analogies. Provides basin descriptions and analysis of hydrocarbon potential, and describes the exploration and development history of the area.

Basin Monitors:

• Bombay Basin
• Cauvery Basin
• Kutch Basin
• Cambay Basin
• Krishna-Godavari Basin
• Bengal Basin
  

Maps:

• West - Bombay Offshore
• West
• General
• Cambay
• North
• South (Cauvery Basin)
• South (Krishna-Godavari Basin)
• Midstream Maps

GEPS Reports:  The flagship IHS E&P reporting package. GEPS is established as the market leader in the provision of definitive, up-to-date, accurate and detailed information

PEPS Reports:  PEPS is a powerful, searchable online service providing constantly updated upstream economic, fiscal and commercial data and analysis.