The 75 per cent import dependent nation also offered for bidding 10 areas for extraction of gas from below coal fields, known as coal bed methane (CBM), at a time when energy firms worldwide are cutting investments because of falling crude prices and economic recession.
"We are offering 24 deep-sea blocks, 28 shallow water blocks and 18 onland blocks for bidding in the eighth edition of New Exploration Licensing Policy (NELP)," Petroleum Secretary R S Pandey said. Bidding for CBM-IV and NELP-VIII rounds will close on August 10, he said.
Asia's third-largest energy consumer is aiming to cut oil imports and has till now awarded 203 in the previous seven rounds with over $11 billion committed in exploration
spend. Besides, 23 blocks have been awarded in the previous three CBM rounds. Over 6 Trillion cubic feet reserves have already been established in four CBM blocks.
"After seven rounds, the area under exploration has increased more than four times to 48 per cent of Indian sedimentary basin area from 11 per cent before implementation of NELP," he said.
Since its advent in 1999, NELP has given 68 oil and gas discoveries in Cambay onland, North East Coast and Krishna Godavari deep-water areas, leading to an accrual of over 600 million tonnes of reserves.
"Reliance (Industries) beginning production from its Krishna Godavari basin KG-D6 block will bring in more investors," Pandey said. "Besides, the start of crude oil production from Cairn India's Rajasthan fields, which is expected any day now, will augur well for the round."
Asked if economic slowdown would impact NELP-VIII, he said: "In our mind, the most effective antidote for meltdown is generation of economic activity."
The worldwide spending on oil and gas exploration may drop 12 per cent in 2009 to $400 billion, Barclays Capital Research has stated.
"Economic meltdown will not last for ever, may be six months or 12 months. The NELP-VIII bids will be finalised in 6-9 months by which time the world will enter a better phase," Pandey said.
Oil regulator V K Sibal said the KG-D6 field of Reliance in Krishna Godavari basin was just the tip of the iceberg and more surprises lie in store on the east coast. "This is the best time to get exploration assets. It will be available more easily. So, I think medium to aggressive bidding (will be) there."
