Indias oil ministry has announced the award of 18 of the 20 exploration blocks on offer under NELP-V - some five days before its self-imposed deadline of 31st July (See:
for full list). Conspicuous by their absence from the list, however, are two blocks located in the country?s hostile northeast region: AA-ONN-2003/1 and AA-ONN-2003/2. Controversy surrounds the award of both these blocks and we are told, ?the empowered committee of secretaries will take a final view.? Block AA-ONN-2003/1 in Assam measures 81-sq km and is the smallest on offer. Block AA-ONN-2003/2 in Arunachal Pradesh measures 295-sq km and is the third smallest. Under normal circumstances, a consortium led by operator Jubilant Enpro of India would have won block AA-ONN-2003/1. Jubilant and allied companies with 45% plus Gujarat Petroleum with 20% and GAIL with 35% secured the highest marks under the Bid Evaluation Criteria. But Jubilant made its bid conditional on an end to the armed separatist insurgency in the region. ?Due to prevailing situation of insurgency there is apprehension that the committed work programme may be affected due to reasons beyond the control of the operator,? writes the consortium. ?In this situation we request the government to consider giving us suitable relief vis-à-vis situation of default.? Oil India, which came second in the race for this block, objected to Jubilant?s position and demanded that its conditional bid be rejected. ?Oil India has been working in the region for the past several decades and has successfully handled such problems,? we are told. ?It is surprising that a private company like Jubilant is making such excuses.? Another stumbling block is Jubilant?s net worth, which should be more than the cost of the Phase-I work programme. ?Jubilant?s net worth falls just short of the requirement,? adds a source. ?The difference is not much but is certainly there.? (Back)
for full list). Conspicuous by their absence from the list, however, are two blocks located in the country?s hostile northeast region: AA-ONN-2003/1 and AA-ONN-2003/2. Controversy surrounds the award of both these blocks and we are told, ?the empowered committee of secretaries will take a final view.? Block AA-ONN-2003/1 in Assam measures 81-sq km and is the smallest on offer. Block AA-ONN-2003/2 in Arunachal Pradesh measures 295-sq km and is the third smallest. Under normal circumstances, a consortium led by operator Jubilant Enpro of India would have won block AA-ONN-2003/1. Jubilant and allied companies with 45% plus Gujarat Petroleum with 20% and GAIL with 35% secured the highest marks under the Bid Evaluation Criteria. But Jubilant made its bid conditional on an end to the armed separatist insurgency in the region. ?Due to prevailing situation of insurgency there is apprehension that the committed work programme may be affected due to reasons beyond the control of the operator,? writes the consortium. ?In this situation we request the government to consider giving us suitable relief vis-à-vis situation of default.? Oil India, which came second in the race for this block, objected to Jubilant?s position and demanded that its conditional bid be rejected. ?Oil India has been working in the region for the past several decades and has successfully handled such problems,? we are told. ?It is surprising that a private company like Jubilant is making such excuses.? Another stumbling block is Jubilant?s net worth, which should be more than the cost of the Phase-I work programme. ?Jubilant?s net worth falls just short of the requirement,? adds a source. ?The difference is not much but is certainly there.? (Back)
