India's Hydrocarbon Outlook – 2022-2023

156 DGH: 3 DECADES OF UNLOCKING INDIA'S HYDROCARBON POTENTIAL In 2018, the Government of India notified a Policy framework for Exploration and Exploitation of Unconventional hydrocarbons in existing acreages under existing Production Sharing Contracts (PSC), Coal Bed Methane (CBM) Contracts and Nomination fields. 7.1.2 Summary of CBM Bid Rounds TheGovernment of India formulatedaCBMpolicy in 1997 and a Memorandum of Understanding (MoU) was signed between the Ministry of Coal and the Ministry of Petroleum and Natural Gas, to act in a co-operative manner for the development of CBM. As per the policy, Ministry of Petroleum & Natural Gas (MoPNG) became the administrative Ministry and Directorate General of Hydrocarbons (DGH) was made the nodal agency for development of CBM in the country. MoC (Ministry of Coal MoC)/CMPDI (Central Mine Planning and Design Institute) carried out the study for the identification of prospective CBM areas out of coal-bearing areas in the country. Four (4) CBMRounds were carried out from2001 to 2008wherein 30CBMBlockswere awarded. In addition, 2 blocks were awarded on nomination basis and 1 under Foreign Investment Promotion Board Route in 2001. During this period (2001- 2008), 16598 Sq Km area was offered for CBM exploration and production. These CBM blocks were in the states of Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, and West Bengal. The total prognosticated CBM resource for the awarded 33 CBM blocks, is about 62 TCF (1767 BCM), of which, 10.5 TCF (296.9 BCM) has been established as Gas-in-Place (GIP). Further, in pursuit of the goal of energy security and to increase the gas share in the country's energy mix from the present 6% to 15% by 2030 GOI launched Special CBM bid round (SCBM- 2021) in September 2021 with attractive fiscal and administrative terms and offered 15 CBM blocks with roughly 8,500 Sq. Km across 6 states under the Hydrocarbon Exploration Licensing Policy through International Competitive Bidding. The prognosticated resource of these blocks is estimated at around 700 BCM. The SCBM- 21 round concluded with the award of Four (4) Blocks of 3862 Sq Km in three (3) states. No Prior experience in the Oil/Gas sector was mandatory. 100% participation is allowed from foreign companies/joint ventures. All Blocks are in category-III Sedimentary basin i.e. no revenue sharing until windfall gain. Each Block was carved out in a single state for regulatory ease. Exploration allowed during the entire contract period. Single License for Conventional & Un-conventional Hydrocarbon No Overlap between existing/ proposed Coal Blocks/mines. The Blocks were distributed across 6 states namely, Chhattisgarh, Jharkhand, Odisha, Madhya Pradesh, Maharashtra, and West Bengal. Expert Team to be appointed within 180 days after commencement of contract. Full marketing and pricing freedom for Gas produced. Net Worth includes Compulsory Convertible Debentures (CCD) in the Net worth Definition. Gas Pipeline infrastructure through GAIL Pradhan Mantri Urja Ganga Pipeline and availability of City Gas distribution network. Salient features of Special CBM Bid Round-2021: