Lok Sabha Question No. 2257 (UNSTARRED), answered on 2018-01-01
Subject: Hydrocarbon Exploration Policy
Ministry: PETROLEUM AND NATURAL GAS
Asked by: KULAMANI SAMAL

## LOK SABHA UNSTARRED QUESTION NO. 2257 TO BE ANSWERED ON 1 st  January, 2018

## Hydrocarbon Exploration Policy

## 2257. DR. KULAMANI SAMAL:

## पैट्रोलियम व प्राक ृ लिक गैस मंत्री

## Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

(a)  the  details  of  the  Oil  and  Gas  blocks  identified  for  allocation  along  with  blocks allocated  under  the  Hydrocarbon  Exploration  and  Licensing  Policy  (HELP)  by  the Government, company/area-wise;

(b) the reserve/block-wise details of blocks where production has already been started as well as other allocated blocks where production is expected to be started soon;

(c) the details of conditions for sharing of profit between the allocated companies and the Government;

(d) the details of profit to be shared by the allocated companies with the Government from  the  sale  of  oil  and  natural  gas  from  different  blocks  managed  by  private companies; and

(e) whether the HELP is different from New Exploration and Licensing Policy and if so, the salient features thereof along with the benefits likely to be extended to oil and gas producing companies?

## ANSWER

## पेट्रोलियम और प्राक ृ लिक गैस मंत्री ( श्री धमेन्द्र प्रधान )

## MINISTER OF PETROLEUM & NATURAL GAS (SHRI DHARAMENDRA PRADHAN)

(a)  &  (b). Under Open Acreage Licensing Policy (OALP) as part of Hydrocarbon Exploration and Licensing Policy (HELP), Exploration & Production companies are allowed  to  put  in  offers  at  any  time  by  submitting  an  initial  Expression  of  Interest (EoI) indicating the area which it wishes to take up for exploration. Based on EoIs received,  the  Government  will  carve  out  the  blocks/fields  and  put  them  up  for International Competitive Bidding. The first cycle for submitting EoI was opened from 1 st July - 15 th Nov 2017. Total 57 EoI were received during this period, out of which 48  are  for  onland  basins,  8  are  for  shallow  water  basins  and  1  is  for  deep-water basin. The Government has finalized 55 blocks for international competitive bidding. Total area admissible under these EoIs is 59282 sq. km.

(c)  &  (d). As  part  of  the  competitive  bids,  the  bidders  are  required  to  bid  the percentage  of  revenue  that  they  will  share  with  the  Government  at  Lower  Revenue Point  and  Higher  Revenue  Point.  The  details  of  the  revenue  share  with  the Government will be finalized on completion of the bidding process and award of the contracts.

(e). Hydrocarbon Exploration and Licensing Policy (HELP) is a paradigm shift from the Production Sharing Contract (PSC) under New Exploration Licensing Policy (NELP). It is simple and easy to administer Revenue Sharing Model (RSC).

The salient features and benefits of new Hydrocarbon Exploration & Licensing Policy (HELP) are as follows: -

1. Single License for conventional and unconventional Hydrocarbons.
2. Easy to administer Revenue Sharing Model
3. Marketing & pricing freedom for the Crude oil & Natural gas produced.
4. Enhanced exploration phase.
5. Zero royalty rates for deepwater and ultra deepwater blocks for first seven years.
6. Equal weightage to work programme and fiscal share
7. Operation  freedom  to  operator  with  minimum  regulatory  burden  (Ease  of  doing business)
8. No cost recovery and micro-management by the Government.
9. Exemption from OIDB Cess.

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