Lok Sabha Question No. 1376 (UNSTARRED), answered on 2015-12-07
Subject: Policy for Auction of Oil/Gas Blocks
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SHIVAJI ADHALRAO PATIL, SHRIKANT EKNATH SHINDE, ANANDRAO  ADSUL, K. MARAGATHAM, RAHUL RAMESH SHEWALE, Shrirang Appa Barne, VINAYAK BHAURAO RAUT, DHARMENDRA YADAV

## LOK SABHA UNSTARRED QUESTION NO.1376 TO BE ANSWERED ON 7 th  DECEMBER, 2015

## POLICY FOR AUCTION OF OIL/GAS BLOCKS

## 1376.  SHRI ADHALRAO PATIL SHIVAJIRAO:

DR. SHRIKANT EKNATH SHINDE:

SHRI ANANDRAO ADSUL:

SHRIMATI K. MARAGATHAM:

SHRI RAHUL SHEWALE:

SHRI SHRIRANG APPA BARNE:

SHRI VINAYAK BHAURAO RAUT:

SHRI DHARMENDRA YADAV:

पेट्रोलियम और प्राक ृ लिक गैस मंत्री

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

- (a)  whether the Government proposes to introduce big reforms in the oil and gas exploration and formulate a new policy for auction of oil and gas blocks and Marginal fields including Production sharing contract to Revenue sharing contract and free natural gas pricing regime;
- (b)   if so, the details thereof along with the salient features of the same and the manner in which the oil and gas industry is likely to be benefited therefrom;
- (c)    the time by which it is likely to be implemented;
- (d)      whether  the  Government  has  invited  suggestions  from  various  quarters  to  frame  new auction policy and if so, whether the Union Government has released consultation paper and open up for public comment and if so, the details thereof alongwith the objections raised by Foreign/ Indian companies and action taken thereon; and
- (e)   whether the consultation paper proposes a unified licensing policy to facilitate the bidders of a hydrocarbon block to be able to explore and extract any and all hydrocarbon blocks and if so, the details thereof?

## ANSWER

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

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

- (a):   The Government has notified Marginal Field Policy (MFP) with the objective to bring 69 un-monetised marginal fields of ONGC and OIL to the production at the earliest. Further, a Uniform Licensing Policy (ULP) including Open Acreage Policy, covering exploration and

exploitation of conventional and unconventional hydrocarbon resources is under consideration in the Ministry.

(b): The salient features of MFP are as under:-

- i. Single license for conventional and non-conventional hydrocarbons
- ii. Bids on a Revenue Sharing Contract (RSC) Model.
- iii. Freedom to sell the crude oil  exclusively  in  domestic  market  through  a  transparent bidding process on arms length basis.
- iv. Freedom for pricing and allocation of gas produced from a cluster / field / discovery on arms length basis.
- v. Royalty rates applicable under New Exploration Licensing Policy (NELP) regime. No oil cess.
- vi. Exemption  from  custom  duty  on  all  machinery,  plants,  equipments,  materials  and supplies related to petroleum operations as applicable in NELP.
- vii. Up to 100% participation by foreign companies, joint ventures will be allowed.

(c):  The  Ministry is  in  the  process  to  complete      formalities  and  launch  the  bidding  round under the MFP soon.

(d):    The  Government  has  hosted  a  consultation  paper  on  the  website  of  the  Ministry  of Petroleum & Natural Gas inviting comments from stakeholders on new fiscal & contractual regime for award of hydrocarbon acreages.

(e): Yes Madam. The proposal is to bring Uniform Licensing Policy (ULP) to enable the contractor to explore conventional and unconventional oil and gas resources including CBM, shale gas/oil tight gas, gas hydrates and any other resource-under a single license.

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