Vol 2, PW 26 (20 Jan 99) Exploration & Production

So, how will the DGH decide what bids to recommend Answer: the company which gets the most "points".

Oil companies attending the international road shows will be given a document outlining four key Bid Evaluation Criteria (BEC), or benchmarks; each with a set number of points, up to a maximum of hundred. It is hoped this will accurately and fairly reflect the company best placed to undertake work in a particular concession.

These are:- 1) Financial Capability (mkt cap, cash flow, debt) 10 pts 2) Technical Capability (track record in E&P) 10 pts 3) Work Programme (seismic, wells, schedule) 70 pts 4) Fiscal terms (who gives India the most) 10 pts It doesnt take a rocket scientist to work out that the company with the most attractive work programme has the highest chance of winning the bid. Further, the DGH wants the work programme to be divided up into three phases; of three, two and two years respectively.

Phase 1 will carry a maximum of 40 points, and it is most likely that the company which provides the most aggressive Phase 1 work programme will win. Every item of the work programme will be graded.

Particular emphasis will be laid on 2D and 3D seismic acquisition programmes, with each point worth a set number of line km seismic shot.