$416 million invested in oil sector: Naik

Oil and gas exploration in India has taken a quantum leap with three significant oil and gas discoveries and about $416 million already invested in less than three years, Petroleum Minister Ram Naik has said.

"Successful implementation of New Exploration Licensing Policy for accelerating exploration and production is evident from the fact that an investment of $338.93 million has already been made as against $250 million estimated expenditure during the first phase of exploration in NELP-I blocks," he said at the Parliamentary Consultative Committee meeting.

The government has awarded 24 oil and gas blocks for exploration in the first round of competitive bidding under NELP.

Another 23 blocks were awarded in NELP-II in 2001 and this year 23 more blocks were awarded under NELP-III.

Under NELP-II, an investment of $77.08 million has already been made against $290 million expenditure committed for Phase-I of the work programme, he said.

Last year over 8 trillion cubic feet of gas reserves and 22 million tonnes of oil reserves were added from two deepwater blocks in Krishna Godavari basin and an onland block in Surat, which were awarded in NELP-I.

"The estimated investment in the three round of NELP is about Rs 14,500 crore (Rs 145 billion), including an investment of over Rs 5,000 crore (Rs 50 billion) under NELP-III," he said.

Besides, another Rs 250 crore (Rs 2.50 billion) investment is envisaged in 8 coal bed methane blocks that are likely to produce 13 million standard cubic meters per day of natural gas by 2005, he said.

Naik said the recent discoveries along with acquisition of oil equity abroad will go a long way in securing energy security for the nation.

Stated-owned ONGC Videsh Ltd has acquired equity in oil and gas fields in Russia, Libya, Vietnam, US, Iran, Syria, Myanmar, Iraq and Sudan while negotiations are on for taking stake in fields in Venezuela, Qatar, Kazakhstan and Indonesia, he said.

To reduce import dependence, the government has launched an ambitious programme to dope 5 per cent ethanol in petrol in four states of Andhra Pradesh, Maharashtra, Punjab and Uttar Pradesh.

"Haryana, Gujarat, Karnataka, Goa, Tamil Nadu, Daman & Diu, Chandigarh, Pondicherry and Dadra & Nagar Haveli would also be covered by June 30, 2003," he said.

Indian Oil Corporation, he said, is entering Sri Lankan market with an investment of Rs 200 crore (Rs 2 billion) as equity towards marketing petroleum products, aviation fuels and bulk supply business.