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Modi government to launch first major oilfields auction in two months
The Modi government is planning to launch its first major auction of oilfields within the next two months under the revamped Hydrocarbon Exploration Licensing Policy (HELP) worked out by the oil ministry. This would also be India’s first oil blocks licensing round since 2010 when acreages were awarded in such an auction under the then applicable New Exploration Licensing Policy.
Significantly, the bidding round would be conducted through the newly worked out Open Acreage Licensing Policy (OALP) that will allow interested firms to bid for blocks of their choice at any time of the year. A key highlight of the process would be the simultaneous launch of National Data Repository (NDR) a comprehensive database of the country’s key sedimentary basins that will provide the bidders data on contract areas that will be bid out.
“NELP is history. We will formally launch the new bidding process and also the National Data Repository within a month or two. The draft NDR has already been submitted to the ministry by the Directorate General of Hydrocarbons (DGH),” a senior official in the know of the blueprint of the entire plan told ETEnergyWorld.
He also informed the ministry has tasked accounting and consultancy firm PwC to work on the details of the bid document for OALP. The oil ministry is also working on a suitable regime of incentives for Exploration and Production (E&P) companies to motivate them to increase production under HELP. “NDR, OALP and the attractive clauses of HELP will transform the E&P scenario in India. It will help in ramping up production and incentivize investments in the sector,” the official said.
The next round of auction under HELP will follow the just-concluded bidding for Discovered Small Fields (DSF) under which 31 oil blocks are to be awarded to around two dozen mostly small-sized firms. The HELP regime is expected to cut down delays in development of blocks and legal disputes with companies because of its revenue share methodology, the ministry believes.
Under HELP, an upstream player will be allowed to explore both conventional and unconventional oil and gas resources including Coal Bed Methane, Shale gas and oil and gas hydrates under a single license. The new policy also stipulates a differential structure of royalty rates based on the depth of the field. The new policy and the upcoming auctions are part of the ministry’s effort to achieve the target of cutting down India’s import dependence for energy by 10 per cent by 2022 set by Prime Minister Narendra Modi Darius Leonard Authentic Jersey
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