| Reference | BID7839 |
| Date | 4/9/2009 |
| Location | Asia |
| Scope | Issue Date: 9 April 2009. Bid Closing Date: 10 August 2009, 1200 hours IST. Bid Opening Date: 10 August 2009, 1330 hrs IST. Bid Bond: the bid bond for each block, which will be valid for one-year period, will be released on signing of PSC for the block. The bid bond will be as followed: 1- Deepwater block Rs.2.0 million, 2- Shallow water block Rs.1.5 million, 3- On-land block Rs.1.0 million, 4- On-land Type S block Rs.0.5 million. Bid Guarantee: One-time Bank Guarantee (BG) valid for the period of exploration at the rate of 7.5% of total committed work program. Information Docket: CD ROM - US$ 10,000 for each Basin. Web Sites: http://www.dghindia.org, http://www.petroleum.nic.in, and http://www.indianelpviii.com Scope of Work: Under the New Exploration Licensing Policy (NELP) for exploration of oil and natural gas, the Government of India announces Eighth offer of exploration blocks. Companies are invited to bid for 70 exploration blocks on offer. - 18 on-land blocks of which 10 are Type S blocks, into five basins (Assam-Arakan, Bengal, Vindhyan, Himalayan Foreland, Cambay). - 28 shallow water blocks, into six basins (Gujarat-Kutch, Mumbai, Kerala-Konkan, Cauvery, Krishna-Godavari, Bengal). - 24 deepwater blocks (beyond 400 meters bathymetry), into four basins (Mumbai, Kerala-Konkan, Krishna-Godavari, and Andaman). Companies may bid for one or more blocks, singly or in association with other companies, through an unincorporated or incorporated venture. Main Features of Terms Offered: The successful bidder would be required to enter into a Production Sharing Contract (PSC), which will be based on the Model Production Sharing Contract (MPSC). Some features of the terms offered by the Government are: - There will be only one Exploration phase of 7 years for all blocks. There will be no compulsory relinquishment after 4 years and operators will have option to relinquish entire area after completion of minimum work programme or retain the Block by committing to carry out drilling of one well per year in case of on-land and shallow water Blocks or one well in 3 years in case of deepwater Blocks. In any case, the entire area (leaving aside the Discovery Area and Development Area) would require to be relinquished at the end of 7 years of exploration. - Up to 100% participation by foreign companies. - No signature, discovery or production bonus. - No mandatory State participation. - Income Tax Holiday for seven years from start of commercial production of “Mineral Oil”. - Biddable cost recovery limit: Up to 100%. - Option to amortise exploration and drilling expenditures over a period of 10 years from first commercial production. - Royalty for on-land areas is payable at the rate of 12.5% for crude oil and 10% for natural gas. For shallow water offshore areas, royalty is payable at the rate of 10% for both crude oil and natural gas. For deepwater offshore areas (beyond 400 m iso-bath) royalty is payable for both crude oil & natural gas at the rate of 5% for the first seven years of commercial production and thereafter at the rate of 10%. - Freedom to the contractor for marketing of oil and gas in the domestic market. Companies interested in inspection of data, purchase of Basin Information Docket and Data Packages and for any further details in this regard may contact: Directorate General of Hydrocarbons. C-139, SECTOR-63, NOIDA (UP), INDIA. Pin Code: 201301 Telephone : 91-120-4029400 Fax : 91-120-4029410 E-mail : dg@dghindia.org |
