India’s Hydrocarbon Outlook 2024 15 A Report on Exploration & Production Activities – ONGC and OIL – for exploration activities. However, these companies faced constraints in terms of technology, expertise, and investment capital needed for deeper offshore exploration. Recognizing these limitations, the government took a strategic initiative in 1979. To attract foreign investment, technology and expertise, Government of India, offered 32 exploration blocks (a mix of offshore and onshore) through a bidding process. These bidding rounds, known as Pre-NELP exploration rounds, aimed to foster collaboration between Indian NOCs and international players. While the initial three rounds held between 1980-1986 witnessed limited success, they marked a shift in India’s approach to exploration, paving the way for future collaborations. Government Takeover and Continued Exploration: The government further consolidated its role in the oil and gas sector by taking over Oil India Private Limited in 1981, transforming it into a full-fledged public sector undertaking (PSU). This move aimed to streamline operations and strengthen India’s domestic exploration efforts. Exploration activities continued throughout the 1980s, with both ONGC and OIL making significant discoveries. In 1982, ONGC made a major gas discovery in Gandhar, Cambay basin, Gujarat. By 1986, the KG basin emerged as a major player with several significant discoveries. This period also saw the third round of international bidding for exploration blocks in 1986. While foreign participation remained limited, the government offered participating companies a 40% back-in right during the development phase, incentivizing future collaborations. New Strategies and a Brighter Future for India’s Oil and Gas Exploration Opening Doors for Private Participation (1990s) In a bid to revitalize the petroleum sector, the Government of India (GoI) introduced more attractive investment opportunities in 1994. However, this period also saw disagreements regarding Production Sharing Contracts (PSCs). Undeterred, ONGC ventured into Coal Bed Methane (CBM) exploration in the Damodar Valley and explored Enhanced Oil Recovery (EOR) options in North Gujarat’s heavy oil belt. By 1996, the GoI had conducted five bidding rounds, offering 126 exploration blocks ranging from 1 sq. km. to a massive 50,000 sq. km. This shift towards a more openmarket attracted not only National Oil Companies (NOCs) and Indian private companies but also major international players like Shell, Enron, Aramco, and Occidental. Contracts for exploration activities were awarded to these companies, with Hindustan Oil Exploration Company (HOEC), established in 1991, being one of the first domestic private players to enter the fray. The Birth of DGH and the New Exploration Licensing Policy (NELP) Recognizing the need for an independent regulatory body in the liberalized oil and gas sector, the GoI established the Directorate General of Hydrocarbons (DGH) in 1993. The DGH’s primary responsibility was to oversee oilfield development programs and ensure sound reservoir management practices aligned with national interests. Following the nomination era (pre-1980s), the pre-NELP exploration era (1980-1995), and pre-NELP field rounds (1993-1994), the GoI formulated the New Exploration Licensing Policy (NELP) in 1997. This policy aimed to attract significant investments, cuttingedge technologies and best practices from both domestic and foreign companies. The ultimate goal was to enhance India’s geological understanding of its sedimentary basins and effectively explore its oil and gas resources to meet the nation’s growing energy demands. Implemented in 1999, NELP introduced a competitive bidding system for exploration licenses. NOCs were required to compete with Indian and foreign companies on an equal footing to secure Petroleum Exploration Licenses (PELs). Nine rounds of bidding were
RkJQdWJsaXNoZXIy MTE0OTM0OQ==