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BG Group, BHP Billiton sign oil exploration pact

The London-based oil major BG India has signed its first deep water operated exploration production sharing contract (PSC) with the Indian government for block MB-DWN-2010/1 in the Mumbai basin which was awarded to the company during 9th round of Nelp.

The London-based oil major BG India has signed its first deep water operated exploration production sharing contract (PSC) with the Indian government for block MB-DWN-2010/1 in the Mumbai basin which was awarded to the company during 9th round of Nelp.

BG India with 50% participating interest remains the operator for the block while Australian oil firm BHP Billiton holds the remaining 50% interest according to the contract.

The Cabinet Committee on Economic Affairs (CCEA) in its meeting held during last month approved award of five blocks under NELP-IX. Out of five blocks, PSCs were signed for 4 exploration blocks.

?We are very pleased that the final approval for this block has come through. We look forward to working with the Indian government to enhance domestic supplies to meet the country?s ever growing energy requirements,? BG India president and managing director, Shaleen Sharma said in a statement.

During NELP-IX, total 34 exploration blocks were offered, that includes eight deep water blocks, seven shallow water blocks, 11 on-land blocks, and 8 on-land blocks.

BG India looks forward to begin work shortly on the block and will actively engage with the relevant governmental bodies to secure the clearances required to carry out this work, the statement said.

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First published on: 11-09-2012 at 01:47 IST
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