Energy explorers bid for only half the oil and gas blocks in an Indian auction as Reliance Industries Ltd., operator of the nation’s largest field, shunned the sale, setting back efforts to cut dependence on imports.
India received offers for 36 of the 70 oil and gas areas, D.N. Narasimha Raju, a joint secretary in the oil ministry, told reporters in New Delhi today. Reliance sought to develop one of the 10 coal-bed methane blocks, a company official said.
Concern that a legal dispute between the billionaire Ambani brothers over a contract to supply gas from the $38 billion field will lead to increased state control of energy pricing may have deterred explorers. Exxon Mobil Corp. and may invest in countries where they can sell fuels at market prices, said analyst Tony Regan.
The lack of response is "primarily because of the uncertainty on pricing and government policy," said Regan at Singapore-based oil consultancy Tri-Zen International, who previously worked for Shell's liquefied natural gas business. "Companies have gotten to be very selective about the projects they take up as funds to finance projects are short."
A total of 76 bids were received for the oil and gas areas and 26 for eight coal-seam gas blocks, according to the oil ministry's Raju. Seven overseas companies were among the 45 that applied for the rights to explore the areas, according to an e-mailed statement from the ministry.
India received offers for 36 of the 70 oil and gas areas, D.N. Narasimha Raju, a joint secretary in the oil ministry, told reporters in New Delhi today. Reliance sought to develop one of the 10 coal-bed methane blocks, a company official said.
Concern that a legal dispute between the billionaire Ambani brothers over a contract to supply gas from the $38 billion field will lead to increased state control of energy pricing may have deterred explorers. Exxon Mobil Corp. and may invest in countries where they can sell fuels at market prices, said analyst Tony Regan.
The lack of response is "primarily because of the uncertainty on pricing and government policy," said Regan at Singapore-based oil consultancy Tri-Zen International, who previously worked for Shell's liquefied natural gas business. "Companies have gotten to be very selective about the projects they take up as funds to finance projects are short."
A total of 76 bids were received for the oil and gas areas and 26 for eight coal-seam gas blocks, according to the oil ministry's Raju. Seven overseas companies were among the 45 that applied for the rights to explore the areas, according to an e-mailed statement from the ministry.
