Expect NELP-X launch by February next year

Vol 18, PW 3 (25 Sep 14) News in Brief

DGH sources believe NELP-X can be formally launched in February next year (2015).

At present, the DGH is waiting to receive comments by September 30 on the draft revenue sharing contract posted on its website, designed to replace the current PSC. By end-October, the DGH also hopes to have clarity on a proposed new domestic gas pricing structure, which will affect the response to NELP-X.

Next the DGH will take four months to prepare for the launch. Still unclear is how plans to issue a new uniform licensing policy to replace the NELP regime will affect NELP-X.

In January (2014) former oil minister Veerappa Moily announced 46 blocks would be offered in NELP-X covering 166,053-sq km. Of the 46 blocks cleared for auction by the government 17 are onland, 15 are in shallow water and 14 are in deepwater.

"We’ll carve out four more blocks from the 46 cleared for auction," says a DGH source. "That will take it to 50.