UK’s BP plc has decided to surrender a KG basin block after restrictions imposed by the Defence Ministry made oil and gas exploration practically impossible in it. Deep-sea KG-DWN-2005/2 or KG-D17 block was won by BP along with Reliance Industries in the seventh round of auction under New Exploration Licencing Policy (NELP) in 2008.
This block’s 70% of area that is 1,949 square kilometre falls in an area where DRDO and Navy exercises are conducted and has been classified as ‘Impact Zone’ where oil and gas operations are not possible. Pursuant to which, the block practically becomes a ‘No Go’ zone for continuous exploration and subsequent developments activities and prevents contractors (BP-RIL) from carrying out petroleum operations.
