Centre rejects Ishar Gasoil's exploration bid

Centre rejects Ishar Gasoil's exploration bid

The government on Thursday rejected private sector Ishar Gasoil’s bids for oil and gas exploration in three blocks after it was found that the company has a negative net worth.

Two of the three blocks were subsequently allotted to public sector GAIL India and another company Deep Energy. The third block could not be awarded in absence of a bidder.

Briefing reporters about the decision taken by the CCEA, Union Finance Minister P
Chidambaram said, Ishar Gasoil's bids for three blocks were rejected after considering the submissions made by the company, views of Directorate General of Hydrocarbons (DGH) and recommendations of an Empowered Committee of Secretaries.

A total of 74 bids were received for 33 blocks (8 deepwater blocks, 6 shallow water blocks and 19 onland blocks) at the close of bidding on March 28, 2011. No bid was received for one exploration block in shallow water.

The CCEA in its meeting held in March 2012, had approved the award of 16 blocks and rejected bids for 11 blocks. Production Sharing Contracts (PSC) were signed for 13 blocks in the same month.

Thereafter, the CCEA in its meeting held in August 2012 approved the award of five blocks. Out of five awarded blocks, PSCs were signed for all the blocks subsequently.