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Wednesday, 07 January, 2009, 21:10 GMT | more >>

India's Nelp 7 cramped by rig shortage



By Upstream staff 

India has delayed the latest auction of oil exploration rights for five months due to a shortage of rigs, according to an Indian media report

India's seventh annual New Exploration Licencing Policy (Nelp) was put off until August from March as a result of drilling delays in exisiting fields, director general of hydrocarbons VK Sibal said.

Explorers have drilled less than 10% of the 880 wells agreed under exploration licences awarded by the government since 2000, Sibal said, according to data from his office.

India is helping explorers tackle the rig shortage by extending drilling deadlines in licence agreements.

"We are in talks with the petroleum ministry on extending exploration agreements from the third and fourth rounds of auctions," Sibal said in an interview with the Business Standard newspaper.

"We don't plan to suspend any contracts."

The government has also asked operators to share equipment to hasten discoveries that would reduce dependence on oil imports.

Reliance, Oil & Natural Gas Corporation (ONGC) and Italy’s Eni have agreed to share drilling equipment and will advertise to jointly hire rigs and seismic equipment for projects on the east coast, Sibal said.

Sharing resources will enable companies to reduce costs as the cost of renting rigs has tripled since 2005 for contracts extending to 2012.


Wednesday, 30 May, 2007, 03:26 GMT  | last updated: Wednesday, 30 May, 2007, 05:36 GMT

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