Lok Sabha Question No. 6 (STARRED), answered on 2016-07-18
Subject: Hydrocarbon Exploration Licencing Policy
Ministry: PETROLEUM AND NATURAL GAS
Asked by: RAKSHA NIKHIL KHADSE

## LOK SABHA STARRED QUESTION NO. 6 TO BE ANSWERED ON 18 th  July, 2016

## HYDROCARBON EXPLORATION LICENCING POLICY

## *6. SHRIMATI RAKSHATAI KHADSE :

पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

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

- (a)  the  salient  features  of  the  current  Hydrocarbon  Exploration  Licencing  Policy (HELP) and the deficiencies noticed in its implementation;
- (b) whether the Government has approved new HELP to streamline the Hydrocarbon acreage  under  a  new  fiscal  and  contractual  regime  to  explore  and  produce conventional  oil  and  gas  and  unconventional  hydrocarbons  as  Coal  Bed  Methane and Shale oil and gas under a single licencing framework;
- (c)  if  so,  the  main  highlight  of  new  Policy  and  the  time  by  which  the  said  policy  is likely to be put into force; and (d)  the  benefits  likely  to  accrue  to  the  exploration  and production by  Public  Sector
- and private companies after implementation of HELP?

## ANSWER

पेट्रोल ियम और प्राक ृ तिक गैस मंत्रािय में राज्य मंत्री ( प्राार रन्त्िवत्र ) ( प्रााप्र ामेवध ीी )

MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  IN  THE  MINISTRY  OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a) to (d) : A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (d)  OF  THE  LOK SABHA STARRED QUESTION NO. 6 BY SHRIMATI RAKSHATAI KHADSE TO BE ANSWERED ON 18.07.2016 REGARDING HYDROCARBON EXPLORATION LICENCING POLICY

(a) to (c): Over the years, there has been a shift in the E&P policy, from nomination acreage  to  competitive  bidding.    The  Government  of  India  designed  the  New Exploration and Licensing Policy (NELP) and Coal Bed Methane (CBM) Policy in late 90s to step up level of investment in Exploration within a framework of progressive de-regulation.  Based  on  the  experience  of  implementation  of  earlier  policies  and contractual regimes, Government of India approved a new exploration and licensing policy named 'Hydrocarbon Exploration and Licensing Policy' (HELP).  The salient features of HELP are given below:

-  Single  license  for  conventional  and  non-conventional  hydrocarbons  -  This license will 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 to be identified in future which fall within the definition of 'Petroleum' and 'Natural Gas' under PNG Rules, 1959.
-  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.

Ministry has initiated the work on the drafting the Notice Inviting Offer, Bid Evaluation Criteria and Model Revenue Sharing Contract.

(d)  :    The  easy  to  administer  fiscal  and  contractual  model  coupled  with  uniform license,  open  acreage,  favourable  royalty  regime,  pricing  and  marketing  freedom, etc.  would  incentivise  the  Public  and  Private  sector  to  increase  exploration  and production activities.

*****