BHP Billiton abandons Indian energy projects

Cites delays in carrying out exploration.

Energy giant BHP Billiton has abandoned nine Indian deep-sea oil and gas projects due to delays in carrying out exploration at the sites. It had given up on six blocks in the Bay of Bengal and another three it fully owns.

BHP said the decision to relinquish these blocks is the result of an exploration portfolio review and the inability to carry out exploration operations in these blocks.

Analysts said BHP's exit is another blow to efforts to attract vital foreign investment needed to upgrade India’s old energy, road, rail and other infrastructure.

Three months ago, South Korean steel giant Posco abandoned plans to build a US$5.3 billion steel mill project due to approval delays. ArcelorMittal at that same time also gave up efforts to build a second steel plant in eastern India over similar problems.

India is heavily dependent on imported fuel and has been slow to develop domestic resources, leading the petroleum ministry to warn earlier this year that red tape was deterring foreign firms.