India's Hydrocarbon Outlook – 2022-2023

27 DGH: 3 DECADES OF UNLOCKING INDIA'S HYDROCARBON POTENTIAL 6. Hydrocarbon Exploration Licensing Policy (HELP) in 2016 The Hydrocarbon Exploration and Licensing Policy (HELP) was instituted with the aim of augmenting the production of oil and gas in the Indian sedimentary basin. HELP represented a paradigmshift froma cost-recovery to a revenue- sharing mechanism and was a significant step towards enhancing the ease of doing business in the Indian exploration and production (E&P) sector. As part of HELP, the Government of India introduced the Open Acreage Licensing (OAL) mechanism, which enables exploration companies to self-select the exploration blocks, without having to wait for formal bid rounds from the government. Some of the most notable features of HELP that have garnered industry acclaim include: Opportunity to demarcate blocks utilizing the National Data Repository (NDR) A Unified Licence for both conventional and unconventional Hydrocarbons A straightforward and easy-to-administer Revenue Sharing model A minimal regulatory burden Permissive entry and exit barriers Complete transparency and a time-bound process A level playing field for global private companies as well as National Oil Companies Market-driven pricing and unrestricted market access A concessional royalty regime for Ultra-Deep water and Shallow Water areas Exploration rights for the entire contract term Refer Chapter - 6 for more details Three DSF rounds have been conducted so far. Salient details are as under: DSF Bid Round-I 2016 Launch date: 25th May 2016 Offered Areas: 46 Contract Area (67 fields), 1551 Sq.km of area, 86 MMTOE of Inplace 134 bids were received for 34 contract areas Awarded: 30 Contract Areas (43 Fields), 777 Sq.km of Area, 45 MMTOE of Inplace Contact signing date: 27th March 2017 DSF Bid Round-II 2018 Launch date: 09th Aug 2018 Offered Areas: 25 Contract Area (59 fields), 3,042 Sq.km of area, 190 MMTOE of Inplace 145 bids were received in 24 Contract Areas Awarded: 24 Contract Area (58 Fields), ~3000 Sq.km of Area, 188.9 MMTOE of Inplace. Contact signing date: 7th March 2019 DSF Bid Round-III 2022 Launch date: 10th June 2021. Offered Areas: 32 Contract Area (75 fields), ~13000 Sq.km of area, 232 MMTOE of Inplace 107 bids were received for 32 contract areas (CA) i.e.3.3 Bids every CA. 27 Companies participated (04 PSU & 2 Foreign Companies). RSC signed for 30 Contract Area (72 Fields), 12,400 Sq.km of Area, 230 MMTOE of Inplace. (One CA- RSC yet to be signed) Contact signing date: 9th Sept. 2022. Refer Chapter - 6 for more details