In a first of its kind move, India’s upstream petroleum regulator, the Directorate General of Hydrocarbons (DGH), will use the all new real-time data monitoring technology to assess output from all the contract areas recently awarded under the Discovered Small Field (DSF) auctions. Real-time data collection and monitoring is being used by many industry players and will help the government decide the quantum of its share as the fields under DSF were awarded based on the new revenue-sharing model prevalent under Hydrocarbon Exploration Licensing Policy (HELP), a senior DGH official told ETEnergyWorld.
“It is a common practice among many industry players. We are working on creating a real-time petroleum measurement data access system which will be live soon. It is a support mechanism as the auctions were under revenue-sharing contract. As the focus is will be on production, such a support system is necessary,” the official said.
After the award of contracts under DSF, the regulator had held workshops for the winning bidders in order to de-brief the contractors, primarily new entrants, about the various aspects of the DSF policy and newly introduced revenue sharing model. These meetings included workshops on financing matters, essential certificates and statutory clearances, Field Development Programme specifications and the taxation regime for the Exploration and Production sector.
The Model Revenue Sharing Contract (MRSC) policy provides flexibility to DGH to issue directions to the contractor on the methodology of measurement, the equipment used for the measurement and the points of measurement of petroleum. In order to create proper infrastructure to promote real-time monitoring, the upstream regulator will announce measurement guidelines to be adhered by the contractors. The operator will have to declare the details of pressure, temperature and flow transmitter in the FDP. The operator will have to facilitate data transfer from all field locations to the central data receiving stations.
The oil ministry had launched the first round of DSF in May 2016 under a new liberalized policy under which 46 contract areas consisting 67 fields spread across nine sedimentary basins were auctioned. The auctions had witnessed 134 e-bids for 34 contact areas of the 46 offered. Later, 22 companies were awarded 31 contract areas of which 15 companies were new entrants with no prior experience in the sector. The ministry had pegged the indicative gross revenue over the economic life of these fields at Rs 464 billion. Sheldon Richardson JerseyShare This