India awards 16 oil and gas exploration blocks

The cabinet on Friday approved the award of 16 oil and gas blocks, less than half of those offered under its ninth exploration licensing round, a government statement said.

Bids were received for 33 of 34 blocks - eight are deepwater, seven shallow water and 19 onshore - offered under an auction in March 2011.

The statement did not name the successful companies. Previous licensing rounds were dominated by state-run firms.

The cabinet rejected bids for14 blocks, including one by Essar Oilfor an onshore block, the statement said, without providing information for the remaining three blocks it received bids for.

It cancelled the award to local firms of two blocks, offered under the eighth round.

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.

India imports about two-fifth of the crude it uses and is keen to quickly tap domestic reservoirs.