New Delhi: The Directorate General of Hydrocarbons (DGH) has recommended that Reliance Industries be granted seven highly prized assets in the Krishna Godavari basin to prospect for oil and gas.

The authority has rejected state-owned Oil and Natural Gas Corporation's bid for a dozen deep-water and four on-land blocks, despite the company being the top ranked bidder in every asset. This was due to DGH's concerns over ONGC's "past performance in deep-water exploration" and on the ground that it had relinquished four onland blocks earlier.

Instead, DGH wants the 12 deep-water blocks to be handed over to some international exploration companies that had participated in the sixth round of the New Exploration Licensing Policy (NELP-VI). It has also suggested that four on-land blocks be allotted to second ranked bidders - Suiwah Corp of Malaysia, Kufpec-NTPC, Adani Enterprises, and HOEC-Tata-BPCL.

The DGH has left the final decision to the Empowered Committee of Secretaries, which is scheduled to meet in New Delhi tomorrow. The authority has given clear recommendations for the award of a total of 36 exploration blocks (9 deep-water, 6 shallow and 21 on-land) to the top ranked bidders.

The recommendations have also rejected Essar Oil's seven deep-water bids on the ground that the company did not meet the eligibility criteria. However, Essar has been recommended for two on-land blocks. Of the total 14 bids rejected, the others included two by Niko Resources and bids by Tap Oil, Finder and M3Energy.

However, the DGH has recommended that ONGC be allotted eight blocks (two shallow water and six on-land, of which in four it is an independent bidder). The company had hoped to win at least 24 blocks.

Among the other companies whose bids have been approved by the DGH are Reliance Natural Resources Ltd (in partnership with Naftogaz-Geopetrol), which has been recommended allotment of an on-land block. The only other company to have been recommended for deep-water blocks (two on the north east coast) is Santos International of Australia.

Among shallow water blocks, GSPC, in partnership with IOC-GAIL-HPCL-Petrogas, is slated to win two, and the Cairn Energy-ONGC-Tata consortium, one block. Among the 21 on-land blocks, ONGC is slated to bag six, OIL-Suntera-Shiv-Vani, three blocks, and the GSPC consortium, two blocks.