India's Hydrocarbon Outlook – 2022-2023

35 DGH: 3 DECADES OF UNLOCKING INDIA'S HYDROCARBON POTENTIAL Mumbai Offshore, Assam Shelf, Rajasthan, Cauvery, Assam- Arakan Fold Belt and Cambay. These basins are largely appraised with 57% of country’s total active operational area (0.36 million square kilometer). Similarly, Category-II basins, which are discovered but awaiting development, cover 0.78 million sq km (23% of total basinal area), holding 8% (1,951 MMTOE) of the total hydrocarbon in- place. 5 basins fall in this category and those are namely Saurashtra, Kutch, Vindhyan, Mahanadi and Andaman. These basins are moderately appraised with 32% of country’s total active operational area. Further, Category-III basins, which are prospective, cover 1.58million sq km (47%of total basinal area), holding 6% (1,543 MMTOE) of the total hydrocarbon in-place. 14 basins fall in this category and those are namely Kerala-Konkan, Bengal-Purnea, Ganga-Punjab, Pranhita- Godavari (PG), Satpura-South Rewa-Damodar, Himalyan Foreland, Chattisgarh, Narmada, Spiti- Zanskar, Deccan Syneclise, Cuddapah, Karewa, Bhima-Kaladgi, and Bastar. These basins are fairly appraised with 11% of country’s total active operational area. The grouping of the basins under the category is dynamic, a Category III basin can be upgraded to II in case there is significant hydrocarbon resource established through discovery (viz. Bengal-Purnea basin is proposed for upgrade to Category II during the next periodical assessment of country-level hydrocarbon resources) or Category II to I, if discoveries are developed for commercial production (Kutch/ Saurashtra basin could be the next as few field development plans were approved for implementation). For unconventional resources, the above category will have a different connotation. For example, CBM gas is currently produced from Damodar sub-basin of Satpura- South Rewa-Damodar basin, which is a Category III basin for conventional resources, however by virtue of commercial gas production, the basin will be deemed Category I for unconventional resources. Under redrafted Revenue Sharing Contract for Hydrocarbon Exploration Licensing Policy, Contractors, operating in Category II and Category III basins for respective conventional and unconventional resources are now exempt from revenue sharing with the government during bid submission and until a windfall gain.