<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>State-run companies have won operating rights for almost half of the 16 blocks awarded under the country's ninth exploration licensing round, a government statement said, with foreign firms yet again hardly in evidence.<br><br>The awards were initially approved by the cabinet last week, but details were pending.<br><br>India failed to woo global players in its oil and gas exploration licensing rounds due to its dim track record of commercial discoveries and sluggish bureaucracy. Previous licensing rounds were also dominated by Indian state-run firms.<br><br>State-owned Oil and Natural Gas Corp (ONGC) cornered six blocks - four as operator and two as minority partner -- out of the 16 areas that the government awarded for oil and gas exploration, but saw its bids rejected for 8 areas including five deep-sea blocks.<br><br>Deep Energy, a subsidiary of US-based Deep Industries, won three onshore areas and Sankalp Oil and Natural Resources three areas each. Focus Energy, Pratibha Oil and Natural Gas and Pan India Consultants got one onland block each.<br><br>In the previous eight rounds of NELP, 235 blocks have been awarded so far.<br><br>RIL, which had bid for six out of the 34 areas offered in NELP-IX, was ranked number one for the Andaman deepsea blocks, AN-DWN-2010/3 and AN-DWN-2010/4, ahead of a consortia of ONGC and Oil India Ltd.<br><br>But 10.95 per cent profit share offered by RIL was less than benchmark 15 per cent and therefore was deemed very low.<br><br>Similar was the view for ONGC's 6.7 per cent profit share offer for two other Andaman Sea block - AN-DWN-2010/1 and AN-DWN-2010/2, where it was the sole bidder.<br><br>Bid by a consortium of ONGC-OIL and GAIL for deepsea block GS-DWN-2010/1 and that of ONGC-OIL-BPRL for Kerala-Konkan deepwater block KK-DWN-2010/1 was also rejected as they offered very low profit share.<br><br>Asia's third-largest economy needs private capital for exploration, and is encouraging local firms to buy stakes in foreign oil and gas projects to meet its surging energy needs.<br><br>Contracts for 16 out of the 33 oil and gas blocks that were bid for in the ninth round of New Exploration Licensing Policy (NELP) were signed today.<br><br>The government had offered 34 areas -- eight deepwater blocks, seven shallow water blocks, 11 on-land blocks, and 8 Type-S (or small) on-land blocks, in NELP-IX. Of these, bids were received for 33 on close of auction on March 28, 2011.<br><br>Oil Secretary G C Chaturvedi said bids for seven deepsea blocks and three shallow water blocks were rejected as bidders offered "very low" profit share to the government.<br><br>ONGC ranked number one in eight of these blocks and Reliance Industries top scored in the remaining two areas but the bids were rejected as profit petroleum offered was less than benchmark 15 per cent.<br><br>Chaturvedi said award of five onland and two shallow water blocks to companies like Essar Oil, Deep Energy and Chinar Commerce Pvt Ltd was put-off due to bidders not meeting eligibility criteria.<br><br>A total of $582.29 million has been committed in the 16 blocks that were awarded, he said.<br><br>India is currently producing around 763,000 barrels per day (bpd) of oil, mostly from fields awarded decades ago - less than a quarter of its 3.878 million bpd refining capacity.<br><br>India, the world's fourth-largest oil importer, ships in 80 per cent of its oil needs.<br><br>(Agencies)</p>