This week our advisory for investors focus on India and Indonesia, where new oil and gas blocks are up for offer, and Pakistan, where the government is banking on a massive privatization plan that includes the state oil company and refinery—big profit makers.
Last weekend, the government of India announced it was putting 46 new oil and gas blocks up for auction, but bidding rules have not yet been defined so investors remain wary. Here are the details for potential investors:
• The new blocks include 14 deep-water, 15 shallow-water and 17 onshore, covering a total of 94 364 km2 of deep water, 47 745 km2 of shallow water , and 23,944 km2 on land
• We don’t yet have the details, but the government is expected to release the auction policies within the next few weeks
• We do know that this will be the first time independent companies will be allowed to acquire a single license for exploration and development
This has not been a terribly attractive venue in the past due to heavy regulations, and there is still much uncertainty about this upcoming auction, but we will be monitoring the progress closely. Previous auctions required bidders to enter production-sharing agreements with the government. The Ministry has been pushing for revenue-sharing agreements instead. If this is pursued, it would have to be approved by a government committee, which would…