Lok Sabha Question No. 4128 (UNSTARRED), answered on 2017-03-27
Subject: Open Acreage Licencing Policy
Ministry: PETROLEUM AND NATURAL GAS
Asked by: ASHOK SHANKARRAO CHAVAN, BIDYUT BARAN MAHATO, PONNUSAMY VENUGOPAL, VINOD KUMAR BOIANAPALLI, SUDHEER GUPTA, SANJAY JAISWAL, RAM CHARITRA, K. MARAGATHAM, KUNWAR HARIBANSH SINGH, RAKSHA NIKHIL KHADSE, RAMACHANDRAN MULLAPPALLY

## LOK SABHA UNSTARRED QUESTION NO.4128

## TO BE ANSWERED ON 27 th  MARCH, 2017

## OPEN ACREAGE LICENCING POLICY

## 4128.     SHRI ASHOK SHANKARRAO CHAVAN:

SHRI BIDYUT BARAN MAHATO:

DR. P. VENUGOPAL:

SHRI B. VINOD KUMAR:

SHRI SUDHEER GUPTA:

DR. SANJAY JAISWAL:

SHRI RAM CHARITRA NISHAD:

SHRIMATI K. MARAGATHAM:

KUNWAR HARIBANSH SINGH:

SHRIMATI RAKSHATAI KHADSE:

SHRI MULLAPPALLY RAMACHANDRAN:

पेट्रोलियम और प्राक ृ लिक गैस मंत्री

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

- (a)  whether the Government has approved new Hydrocarbon Exploration Licencing Policy and  Open  Acreage  Licencing  Policy  to  undertake  and  streamline  the  exploration  and production of oil and gas from deep/ultra deep water blocks and if so, the salient features of the same and the time by which the said policy is likely to be implemented;
- (b) whether Oil and Natural Gas Corporation Limited and Oil India Limited propose to auction certain unviable small and marginal fields, if so, the details thereof along with the Oil and Gas fields proposed to be auctioned; (c)  whether the Government has recently organised any promotion event in Houston with regard to the country's new Hydrocarbon Exploration and Licencing Policy (HELP) and if so, the details and the outcome thereof along with the key features of HELP; (d)   whether some State Governments have raised concerns against the auctioning of said contracts for small fields and if so, the details thereof and the response of the Government thereto; and
- (e)   whether the Government has taken any steps to reduce the use/consumption of oil and natural gas in the country and if so, the details thereof and the steps taken/being taken by the Government to attract more foreign investment and boost output of oil and gas in the country?

## ANSWER

## पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री ( प्राार रन्त्िवत्र ( ) प्रााप्र ामेवध ीी )

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

- (a):  Government  of  India  in  March  2016  has  approved  a  new  exploration  and  licensing regime to  boost  oil  and  gas  exploration  in  the  country  and  to  reduce  gestation  period  for exploration. The salient features of new Hydrocarbon Exploration Licensing Policy (HELP) can be brought out as under:
-  Single license for conventional and non-conventional hydrocarbons
-  Open Acreage Licensing Policy
-  Revenue Sharing Contract
-  Graded royalty rates for offshore area
-  The contractor  will  be  free  to  sell  the  crude  oil  exclusively  in  domestic  market  through transparent bidding process on arms length basis.
-  The contractor will have freedom for pricing and marketing of gas produced from these blocks on arms length basis.
-  There is no levy of Cess on crude oil.
- (b): The Government has approved Discovered Small Field (DSF) Policy for monetization of 69 discovered small fields of Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL), which had not been put into production by these companies. Under DSF Policy bid round 2016, Government has recently awarded 31 contract areas to the successful bidders for development of the field.
- (c):    Government  of  India  organized  a  promotion  event  for  India's  new  Hydrocarbon Exploration and Licensing Policy (HELP) at CERA Week 2017 in Houston on 6 th March 2017. The aim of the event was to encourage active global participation in upcoming investment opportunities in India which has one of the world's fast growing oil and gas industry. Global energy leaders, government dignitaries, policy makers, innovators and industry professionals participated in the event.
- (d):    Some  local  people/organizations,  have  submitted  representations, and  also filed  two petitions  in  National  Green  Tribunal  (NGT),  Southern  Zone,  Chennai  objecting  award  of some  discovered  small  fields  expressing  apprehension  regarding  possible  environmental impact.  The  awarded  projects  will  be  taken  up  for  production  after  following  the  requisite process  including  obtaining  environmental  clearances.    ONGC  in  collaboration  with  local administration is disseminating  information  through  various  local  media  to  allay the apprehensions of people.

(e):  The measures taken by the Government to reduce the use/consumption of oil and natural gas in the country, inter-alia, include promoting energy efficiency and conservation  measures,  giving  thrust  to  demand  substitution,  capitalizing  untapped potential  in  Biofuels  and  other  alternative  fuels/renewable  and  implementing  measures for refinery process improvements.

The details of step taken by the Government through Petroleum Conservation Research Association are as under:-

- i. Reducing energy consumption in the industry sector through perform achieve and trade (PAT) scheme.
- ii. Reducing energy consumption through introduction of standard labeling program for  equipments  using  peto-based  fuels  such  as  Domestic  LPG  Stoves,  Diesel Irrigation Pump Sets & Diesel Generating Sets.

iii.

- iv. Carrying out energy audits.
- v. Training of drivers and organization of transport workshops.
- vi. Educating housewives on efficient use of domestic LPG.

In  order  to  attract  more foreign  investment  and boost  output of oil  and gas in the country following steps are taken / being taken by the Government:

- i. Implementation  of  Hydrocarbon  Exploration  Licensing  Policy  (HELP)  and  Open Acreage  Licensing  Policy  (OALP)  Dissemination    of  Geo-Scientific  data  through National data repository (NDR)
- ii. Early Monetization of Discovered Fields including small & Marginal fields
- iii. Extension of Existing PSCs
- iv. Appraisal of unapprised Areas in various sedimentary basins  under National Seismic Program and Multi-client Geo-scientific Surveys/activities in order to enable systematic exploration in these areas
- v. Re-Assessment of Hydrocarbon Resources of the country

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