Since the time of writing my previous communication, there have been two important events connected with the functions of DGH. I would like to share the highlights on these developments with you.  

Firstly, the bids for the NELP-IX round were received on 28th March, 2011 (the bid closing date). It is a matter of immense satisfaction that out of the 34 blocks offered, bids have been received for 33 blocks. It reaffirms the confidence that the investors have in the hydrocarbon prospectivity of Indian sedimentary basins and the transparency and good governance that has become a hallmark of the entire NELP process. We have received 74 bids for 33 blocks. Only one block did not elicit a reponse. A total of 37 companies comprising 8 foreign companies and 29 Indian companies have bid either on their own or as a part of consortia. The government’s desire to enhance the number of players in the E & P sector has been achieved as is evident from the fact that 10 new companies have bid either on their own on in consortia. Out of the 33 blocks for which bids were received, 19 blocks attracted multiple bids. It is also a major achievement that all 4 deepwater blocks in the Andaman Basin have received bids. The intensified E & P activity in the Andaman Basin will go a long way in exploring this frontier area. The process of evaluation of the bids and award of blocks to the successful bidders is expected to be completed in about 3 to 4 months. However, a preliminary evaluation of the bids indicates that in comparison to the previous rounds of NELP, where the major chunk of blocks went to Public Sector companies, this time around, private players, notably small companies, have emerged as front runners in a significant number of blocks.

I take this opportunity to thank all the bidders for their wholehearted participation in the NELP-IX bidding round and wish them success not only in winning the bids but in finding more oil and gas for nation’s energy security.

Secondly, our efforts in advancing the development of shale gas in India are continuing. The Multi Organization Team (MOT) constituted for the purpose of coordinating the National Oil Shale Program has identified five (5) sedimentary basins for detailed resource evaluation. A Shale Gas Technology workshop was organized on 16th and 17th March, 2011 with Schlumberger as Knowledge Partner in New Delhi. The 2-day workshop included presentations by top ranking experts in shale gas exploration from Schlumberger, ONGC and DGH.  The workshop which was attended by over 100 participants covered a wide range of topics including Geology, Geophysics, Drilling, Well-completion, Fracturing, and Environmental issues of shale gas exploration and exploitation. A total of 18 technical presentations were made followed by lively discussions.

It is a matter of great satisfaction that the first R & D well drilled by ONGC, in association with Schlumberger, for exploring shale gas deposits in the Damodar Valley encountered about 800 meters of shale. Preliminary indications, as informed by ONGC, are that the test results are encouraging for the presence of shale gas. Detailed evaluation of the shale is being carried out by ONGC through a US based laboratory. Following up on this encouraging find, ONGC plans to drill three more such wells in the Gondwana basins for shale gas exploration. I believe that there is lot of scope for Universities and research institutions to contribute in the study of shale deposits occurring in various sedimentary basins of India, that might hold promise for shale gas. It would be really helpful if these institutions come forward and support the cause of shale gas exploration in India by providing technical and scientific inputs available to them.

With the entry of several new players in the oil and gas sector through NELP-IX, our march towards self-sufficiency in hydrocarbon energy will soon attain a faster pace.

I wish all the bidders great success in their endeavors.


(S.K.Srivastava)