9 Apr 2009, PTI
NEW DELHI: The global economic downturn would not have any effect on the auction of oil and gas exploration blocks under 'NELP-VIII' launched on Thursday, Petroleum Secretary R S Pandey said.
"The entire process of bidding would take around four months and exploration can be started by successful bidders only after 10 months from now. Thus, recession would not affect NELP-VIII," he told reporters here.
"This is the right time to launch the eighth round of New Exploration and Licensing Policy (NELP) as this is for long- term investors," the Secretary said.
Globally a large number of investors are investing in oil and gas exploration blocks. "For instance, about 100 such blocks are being offered in Iceland," he said.
Echoing similar views, Director-General Hydrocarbons V K Sibal said, "The current crude oil price of dollar 50 a barrel is an excellent price at the production cost of 14-20 dollars a barrel."
He said, "The crude oil cost goes up under the royalty regime where investors get assured petroleum reserves. But under the product sharing contracts, it is always cheaper because the investors have to explore and produce. Thus, we have the cost advantage and will get good response under NELP-VIII," he said.
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