India described the poor turnout at its latest oil and gas exploration licensing auction as “more than satisfactory”.
Major global companies were absent from auctions for 33 oil and gas blocks under the New Exploration Licensing Policy (NELP-IX) as only 74 bids, mostly from smaller companies were received.
Most of the 33 blocks went to domestic players. The two major companies took part in the auction are UK's BG (formerly British Gas) and Australian mining giant BHP-Billiton.
However India's petroleum minister Jaipal Reddy rejected suggestions that the long time being taken by the government in deciding on Vedanta Resources' $10.6 billion acquisition of Cairn India has dampened investor sentiment.
Meanwhile India's Flagship explorer ONGC bagged 10 of the 33 exploration acreages that received bids at the close on Monday.
ONGC bid with sister companies such as Oil India for 29 blocks and won 10. The company had won almost two-thirds of the blocks offered in the previous rounds.
India imports over 70 per cent of the crude it uses and is keen to tap quickly domestic reservoirs.
Global oil firms are more inclined to invest in countries with higher prospects for finds, but India's position has also suffered because of bureaucratic sloth.
BP, which has just bought a 30 per cent stake in 23 Indian blocks owned by Reliance, did not put in a bid. BG, with BHP Billiton, applied for and won only one block.
India is competing with big oil-producing countries worldwide for exploration interest that could help it achieve energy self-sufficiency.
A total of 34 blocks were initially on offer under the ninth licensing round, but one shallow water block received no bids.
The winning bids have to be endorsed by India's cabinet. Of the 33 blocks, eight are deepwater, six shallow water and 19 onshore blocks.
India is currently producing around 720,000 barrels per day of oil, mostly from fields awarded decades ago less than a quarter of its 3.18 million bpd demand.
Proven oil reserves amounted to 5.8 billion barrels in 2009 — enough only to satisfy its oil needs for about five years, according to the BP Statistical Review.
Indian oil firms are seeking foreign expertise to tap into the country's largely unexplored deep offshore water, which will require billions of dollars of investment.
