India’s Hydrocarbon Outlook 2024 176 A Report on Exploration & Production Activities 3. Status of Unconventional Hydrocarbons 3.1 Coal bed Methane 3.1.1 Governing Policies: 1. In 1997, the Government of India (GoI) formulated a policy for the development of CBM. A Memorandum of Understanding (MoU) was signed between the Ministry of Coal (MoC) and the Ministry of Petroleum and Natural Gas (MoPNG) to work on mutually agreeable framework. According to the policy, MoPNG was designated as the administrative ministry, while DGH appointed as the nodal agency for CBM exploration and development in India. 2. In 2007, CBM Phases & Extensions Policy was framed to provide a transparent and consistent framework for granting extension in exploration phases under CBM contracts. 3. In 2015 (re-notified in 2018), the Government of India, granted permission to Coal India Limited (CIL) and its subsidiaries to explore and produce CBM from its areas under Coal Mining Lease, thereby, dispensing the requirement of having additional License fromMinistry of PetroleumandNatural Gas. This was formulated to increase the area under CBM exploration and to accelerate CBM production from coal mining areas. 4. In 2016, unified licensing policy under Hydrocarbon Exploration and Licensing Policy (HELP) was introduced wherein all types of hydrocarbon resources, both conventional and unconventional were allowed to be explored and exploited. The Open Acreage Licensing Programme (OALP) under HELP to carry out exploration and production in open areas, not held by any party and Discovered Small Field (DSF) Policy to exploit oil and gas discoveries, hitherto unpursued are two such policies. 5. In 2017, a policy framework for Early Monetization of CBM was introduced to develop alternate sources of natural gas. This policy was formulated to provide marketing and pricing freedom for CBM and streamline the operational issues in the existing blocks. 6. In 2018, the Government of India notified a policy framework for Exploration and Exploitation of unconventional hydrocarbons in the existing acreages under existing Production Sharing Contracts (PSC), Coal Bed Methane (CBM) Contracts and Nomination fields. 3.1.2 Award of CBM acreages 1. As per extant CBM policy 1997, the Ministry of Coal, through CMPDI conducted studies to identify prospective CBM areas within the coal-bearing regions of the country. From 2001 to 2008, four CBM bidding rounds were held, resulting in the award of 30 CBM blocks. Additionally, 2 blocks were allocated on a nomination basis, and 1 block was awarded under the Foreign Investment Promotion Board (FIPB) in 2001. During this period (2001-2008), a total area of 16,598 sq km was awarded for CBM exploration and production. These awarded blocks were located across various states including Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, and West Bengal. 2. The total estimated GIIP for the 33 awarded CBM blocks is 62 TCF, of which 10.5 TCF has been established as discovered GIIP. 3. Further, in pursuit of the goal of energy security and to increase the gas share in the country’s energy mix, GoI launched Special CBM bid rounds (SCBM) in 2021 and 2022. With attractive fiscal and administrative terms bidding was made under OALP through International Competitive Bidding. During these two SCBM rounds, 7 blocks of area 4,579 sq. km were awarded. The total GIIP of the 7 awarded blocks works out to 294 BCM.
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