Coal News We love to talk!
The government on Wednesday replaced the New Exploration and Licensing Policy with the Open Acreage Licensing (OAL) under the framework of Hydrocarbon Exploration and Licensing Policy (HELP). This replaces the controversial profit model in petroleum with a revenue share model.
OAL will allow investors looking for exploring hydrocarbons to select blocks after studying the data available through the national data repository without waiting for a formal bid round from the government.
Investors will have the option to carve out an area of their choice and submit the expression of interest for reconnaissance or petroleum operations contract. DGH will finalise the block and invite bidding biannually. Other companies can submit online and physical bids, following which bids will be evaluated and final contract will be awarded.
Union petroleum minister Dharmendra Pradhan said, "We expect OAL to accelerate exploration activity in the country."
The reconnaissance contract will be for two year extendable by one year as against the petroleum operations contract which will have exploration period of eight to 10 years and contract period of 20 years. For a given area, EOI for petroleum operations contract would be preferred over reconnaissance contract.
Companies can identify stretches through the National Data Repository (NDR) which was unveiled today. In the current round, 2.7 million square kilometres is being offered.
Nine rounds of NELP has attracted $40 billion investment so far. According to Pradhan, the total oil and gas production from NELP, however, is equivalent to just three days of oil consumption.
- IGL net grows 18% to Rs 306 cr in FY12 Read more
- Oil firms confront theft from pipelines Read more
- Forget $8 proposed by RIL, ONGC asks for nearly $13 for deep-sea gas Read more
- Subsidised LPG cylinder price hiked by Rs5.57, ATF cut by 5% Read more
- Pradhan discusses land identification for oil depots with J&K Chief Minister Read more
- In a first, Indias petroleum regulator to use real-time data monitoring tech to assess output from fields Read more
- Finance Ministry returns Oil Ministry's gas price premium proposal Read more
- Decision on Iran imports to be based on Indias interests, says Oil Minister Read more
- Kelkar panel favors PSC regime and waiving of import duty on LNG Read more
- Consumers with income above Rs.10 lakh to lose gas subsidy Read more