ONGC to invest in NELP projects
State-owned ONGC will invest about Rs 1720 crore ($ 382 mm) in 13 oil and gas blocks awarded to it under the third
round of bidding of NELP.
"About $ 382 mm is likely to be spent by ONGC and its partners during the three exploration phases. Out of this,
ONGC's share will be in excess of $ 346 mm," a company official said.
The ONGC-led consortium, which signed a licence agreement for the 13 blocks, would invest $ 198 mm in the first phase
of exploration. Of this, ONGC's share would be in excess of $ 175 mm.
ONGC has been awarded nine blocks in Cauvery basin, Gujarat-Saurashtra Basin, Kerala-Konkan Basin, Assam, Cambay and
Himalayan Foreland on its own and three blocks in Assam and Rajsthan basin with Oil India Ltd and one block in
Pranhita-Godavari basin with Indian Oil Corporation. The consortium has committed to drill 23 wells in the initial
exploration phase, sources said.
Under NELP-II, ONGC-led consortium, which won 16 blocks, had committed an investment of $ 650 mm, out of which ONGC's
share was likely to be around $ 550 mm.
"During Phase-I of exploration, the indicative expenditure by the ONGC (consortium) are in excess of $ 230 mm, out of
which, more than $ 32 mm have already been spent till the end of March 2002," the official said.
