The US-based BBB Champions Oil
and its UAE partner Emirates Associated Business Group (EABG) are going to
start oil and gas exploration in block 8 in Janakpur, block 9 in Rajbiraj, and
block 10 in Biratnagar from December.
BBB Champions and EABG expects to
spend over $ 10 million per block in their exploration phase in each of the
three blocks to locate, identify and establish oil and gas production both
conventionally and unconventionally, said president of BBB Champions Oil
Michael D Mitcham here today.
"If the combined efforts of
exploration are successful, Nepal will become independent on energy," he
said, adding that it will also raise the standard of living and contribute to
the overall economy.
The Department of Mines and
Geology had awarded three petroleum exploration blocks to the US-based BBB
Champions Oil and the Dubai-based Emirates Associated Business Group on July 5
after a cabinet approval.
The department had asked for bids
for petroleum exploration in three blocks — 8, 9 and 10 — in January.
The companies will have four
years to complete the exploration work, according to the department. "They
can also extend the term for four more years in two installments, if they fail
to meet the deadline but their work progress has to be satisfactory," it
added.
With the handing over of the
three blocks, all the 10 blocks have been handed over to foreign companies for
exploration.
The government had already
awarded two blocks — block 3 in Banke and block 5 in Chitwan — to Houston-based
Texana Resources Company, and five blocks to a Scottish oil and gas company
Cairn Energy.
Similarly, Cairn also has a
licence to explore five other blocks; block 1 in Dhangadi, block 2 in Karnali,
block 4 in Lumbini, block 6 in Birgunj and block 7 in Malangawa.
The department has divided the
Terai and Siwalik Hills into 10 exploration blocks of 5,000-sq-km each for oil
and gas exploration.
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