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North-East could get an oil push, 19 blocks from region offered under mega OALP auctions - Report

Gasoil News - Published on Tue, 16 Jan 2018

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ET reported that Assam-Arakan basin spread across Assam, Nagaland, Arunachal Pradhesh, Manipur, Mizoram and Tripura received the highest Expression of Interests (EOI) from upstream players, leading to 19 blocks being offered from the region under the second stage of India's maiden oil and gas auctions under Open Acreage Licensing Policy (OALP).

Apart from the renewed prospects of oil and gas exploration activities under OALP auctions, government-owned oil Public Sector Undertakings' (PSUs) plan to form a Special Purpose Vehicle (SPV) to create a natural gas pipeline network in the region. Also, gas utility GAIL's plan to extend the 2,500 Km Urja Ganga gas pipeline to Guwahati will further add impetus to economic activities in the North-East part of the country.

An oil and gas analyst said that "It is not certain whether all the 19 blocks being offered from the Assam-Arakan basin will have oil and gas reserves. However, data analysed shows that there is potential and the maximum investor interest is in NE basins. Nevertheless, the region will witness a spur in exploration and drilling activities due to auctions."

According to information provided by the country's upstream oil and gas regulator Directorate General of Hydrocarbons (DGH), the Assam-Arakan basin comes under Category-1 sedimentary basin with established commercial production. The basin is estimated to have around 1,454.8 Million Tonne of Oil Equivalent (MMTOE) of undiscovered hydrocarbon reserves.

The country is offering a total of 55 oil and gas blocks for bidding under stage two of OALP. Of this, 11 oil and gas blocks are from Cambay basin with undiscovered resources of approximately 785 MMTOE, followed by 9 blocks from Rajasthan (3,188 MMTOE), 5 blocks from Krishna-Godavri basin (7,578 MMTOE).

Also, there are two blocks from Gujarat-Kutch basin (827 MMTOE), 2 blocks from Gujarat-Saurashtra basin (1,246 MMTOE), 3 blocks from Cauvery basin (1,672 MMTOE), 2 blocks from Mumbai-Offshore (4,852 MMTOE), 1 block from Ganga Basin (128.4 MMTOE) and 1 block from Himalayan Foreland (44 MMTOE).

The first round of bidding on the EOIs submitted will be launched by Oil Minister Dharmendra Pradhan on 18 January and will close on 31 March 2018. The oil ministry expects to award blocks under India's maiden OALP oil and gas auctions by June 2018.

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Posted By : Rabi Wangkhem on Tue, 16 Jan 2018
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