New Delhi, Dec 11 (IANS): Global energy majors are exiting Indian oil and gas blocks owing to defence and maritime related issues, senior petroleum ministry officials said Wednesday.

“They (Australia's Santos Ltd.) had met us and said that they would like to exit. That's because there is some problem due to the Bangladesh water dispute. They are under international arbitration for a long time,” Petroleum Secretary Vivek Rae told mediapersons on the sidelines of the India Energy Forum - ORF organised Petro India summit.

Santos was awarded two offshore oil and gas exploration blocks in the Bay of Bengal in February 2007 but been unable to start work due to the maritime boundary dispute with Bangladesh.

BHP Billiton Ltd, also headquartered in Australia, has given notice in October of relinquishing nine exploration blocks it was awarded between 2008 and 2010 under the New Exploration and Licensing Policy (NELP) after it failed to get the defence ministry's clearance.

"BHP left country not because of the oil ministry. It left because of sacrosanct defence establishments that have to be protected. Santos left because of maritime dispute with Bangladesh," Aranane Giridhar, Joint Secretary (Exploration) in the petroleum ministry told reporters at the conference.

Bearing in mind that such departures would not send right signals ahead of a new round of oil and gas block auctions in January, Giridhar said : "We are talking to them. We are trying to work out something that we can give them."

He said one option being considered is allowing state-run explorer ONGC to buy a majority stake in the blocks so it can obtain the necessary approvals.

"The idea is that they (BHP) retain 20 or 25 percent stake in the blocks," Giridhar said.

As many as oil and gas 86 blocks would be on offer in the 10th round, making it the largest offering of blocks since the start of NELP in 1999.