Lok Sabha Question No. 164 (UNSTARRED), answered on 2017-07-17
Subject: Auction of Oil and Gas Fields
Ministry: PETROLEUM AND NATURAL GAS
Asked by: C.S. PUTTARAJU

## LOK SABHA UNSTARRED QUESTION NO. 164 TO BE ANSWERED ON 17 th  July, 2017

## Auction of Oil and Gas Fields

## 164.   SHRI C.S. PUTTA RAJU:

## पैट्रोलियम व प्राक ृ लिक गैस मंत्री

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

(a) whether the Government proposes to go for auction of oil and gas fields in the country and if so, the details thereof along with number of such blocks offered at present, company/block-wise;

(b)  whether the last New Exploration Licensing Policy (NELP) has not been able to achieve the exploration target;

(c)  if  so,  the  details  thereof  along  with  action  taken  by  the  Government  to  restructure  earlier hydrocarbon policy and to formulate new auction policy; and

(d)  whether  opinion  of  the  various  Public  Sector  Undertakings  under  the  control  of  Ministry  of Petroleum  and  Natural  Gas  and  experts/consultants  has  been  taken  on  the  proposed  auction policy and if so, the details thereof?

## ANSWER

पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री (स्विन्त्त्र प्रभार) (श्री धमेन्त्र प्रधान)

## MINISTER  OF  STATE  (I/C)  IN  THE  MINISTRY  OF  PETROLEUM  &  NATURAL  GAS (SHRI DHARAMENDRA PRADHAN)

(a). The Government of India has launched the new  Hydrocarbon Exploration & Licensing Policy (HELP)  and  Open  Acreage  Licensing  Policy  (OALP)  on  1 st July,  2017.  Under  the  Hydrocarbon Exploration & Licensing Policy (HELP) bidder will have option for carving out exploratory blocks from the designated areas and submit the Expression of Interest (EOI). Thereafter, blocks will be awarded  through  international  competitive  bidding  process.  The  number  of  blocks  available  for auction  will  depend  upon  on  the  Expression  of  Interest  (EoI)  received  during  initial  window  that ends on 15 th November, 2017.

(b) & (c). The objective of the New Exploration Licensing Policy (NELP) was to attract the private investment in oil and gas sector to enhance domestic production. Nine bidding rounds were held. The NELP policy was based on Production Sharing Contract where Government take depends on sharing of profit petroleum, based on Pre-Tax Investment Multiple (PTIM) after cost recovery which resulted  in  many  arbitration  /court  cases.  Government  has  launched  the  new  Hydrocarbon Exploration Licensing Policy (HELP) and Open Acreage Licensing Policy (OALP) with the objective of boosting the production of oil and gas in the Indian Sedimentary Basins. The salient features of new Hydrocarbon Exploration & Licensing Policy (HELP) are as follows: -

-  Single License for conventional and unconventional Hydrocarbons.
-  An Open Acreage Licensing Policy.
-  Easy to administer Revenue Sharing Model
-  Marketing & pricing freedom for the Crude oil & Natural gas produced.
-  Zero royalty rates for deepwater and ultra deepwater blocks for first seven years.
-  Equal weightage to work programme and fiscal share
-  No oil cess
-  Custom duty exemption etc.

(d). The  Hydrocarbon  Exploration  &  Licensing  Policy  (HELP)    was  prepared  after  wide  ranging consultations with various stake holders such as public and private operators, service providers, industry and trade associations etc., including  Public Section Undertakings under the jurisdiction of this Ministry.

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