India’s Hydrocarbon Outlook 2024 148 A Report on Exploration & Production Activities Feature Previous Provision Revised Provision Bidding Parameter Weightage: Biddable Work Program: 20% Govt. Revenue Share : 80% No HRP Ceiling Weightage: Biddable Work Program: 50% Govt. Revenue Share : 50% HRP Upper Ceiling : 50% Early Production No Incentive Incentivizing early commercial production during development period (Oil: Min of 5 US$/bbl and Quoted LRP) (Gas: Min of 0.2 US$/MMBtu and Quoted LRP) Liquidated Damage (LD) High LD in case of failing to meet Minimum Work Programme 75% reduction in LD amount Exit Option No Provision Option to exit without LD Payment in case of delay in statutory clearances beyond 2 years Key highlights of DSF Bid Round-III are as follows: • Enhanced Investor Confidence and Increased Participation The DSF-III bid round saw a remarkable turnout of 107 bids for 32 Contract Areas, with the participation of 27 companies, of which 23 were private players. This increased participation has enhanced investor confidence in the sector. • New Entrants Five new entrants, including two foreign companies, have entered the Indian E&P sector through this bidding round, demonstrating a growing international interest in the Indian hydrocarbon industry. • Move Towards Blue Economy A noteworthy aspect of this bid round is that approximately 90% of the hydrocarbon resources offered are in the Indian offshore region, signaling a move towards a blue economy. • Attractive Terms The terms offered in this bid round are particularly appealing, with the issuance of a PML grant letter in offshore Contract Areas alongside the contract signing and incentivization for early monetization, further encouraging investment in the E&P sector. • Data Sharing on Fast-Track Basis Data can be a crucial component for companies involved in oil and gas exploration. Such facilitation allows them to access relevant geological and geophysical data more quickly, which can aid in decision-making and reduce exploration & production costs. Table 6.3: Revised Provisions of DSF - III
RkJQdWJsaXNoZXIy MTE0OTM0OQ==