Friday signing of two PSCs from NELP-V

Vol 9, PW 18 (15 Dec 05) News in Brief

DGH and company officials will sign PSCs for two remaining blocks offered under NELP-V tomorrow (Friday) 16th December.

Blocks AA-ONN-2003/1 in Assam and AA-ONN-2003/2 in Arunachal Pradesh were withheld from the signing ceremony for 20 PSCS (of which only 18 were signed) on 23rd September because of disagreement with the winning bidders. Geopetrol of France (30% and operator), with NTPC (40%) and Canoro Resources of Canada (30%), argued that block AA-ONN-2003/2 lies in a frontier area and it should be allowed to carry out the Phase-I work programme in four years, not three.

Jubilant Enpro (45% and operator), with GAIL (35%) and Gujarat Petroleum (20%), argued it should be exempt from its work programme for AA-ONN-2003/1 if terrorist disruption affected exploration. Cabinet referred both awards to the law ministry and the two consortia later dropped their conditions.

On 29th September cabinet approved the awards.

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