India’s Hydrocarbon Outlook 2024 22 A Report on Exploration & Production Activities c. New Exploration Licensing Policy (NELP) In a bid to revitalize India’s oil and gas exploration, the government implemented the New Exploration & Licensing Policy (NELP) in 1999. This policy introduced a game-changer competitive bidding for exploration blocks. Previously dominated by state-owned National Oil Companies (NOCs) like ONGC and OIL, NELP opened the doors for private and foreign companies to participate. This created a level playing field, fostering healthy competition and public participation in the sector. The impact was far-reaching. NELP not only accelerated the exploration efforts but also attracted a wave of new players. From a mere 35 companies (including PSUs, private and foreign) before NELP, the number ballooned to a whopping 117 after nine rounds of bidding. This surge included a significant rise in private and foreign participation, bringing with them cuttingedge technology and efficient management practices. NELP’s influence extended beyond just numbers. It paved the way for deep-water exploration, previously considered a significant hurdle. These discoveries proved to be a boon for the industry, accelerating exploration, enabling deep-water oil and gas production, and infusing the E&P sector with muchneeded technology and investment. In total, a staggering 1.5 million square kilometers were awarded through bidding, with Production Sharing Contracts (PSCs) signed for a massive 254 exploration blocks across various terrains, including onland, shallow water, and deepwater areas. Round wise details are as follows: So, in summary a total of 310 Production Sharing Contracts were signed, out of which 67 Contracts are operational as on 31st March, 2024. Details of Operational blocks can be found at Annexure. 1.3.3 Revenue Sharing Contracts In recent years, the domestic upstream sector has witnessed substantial policy reforms and progressive decisions. As part of a major Table 1.4: NELP Bid Rounds Round Launch Year Signing Year PSC Signed NELP-I 1999 2000 24 NELP-II 2000 2001 23 NELP-III 2002 2003 23 NELP-IV 2003 2004 20 NELP-V 2005 2005 20 NELP-VI 2006 2007 52 NELP-VII 2007 2008 41 NELP-VIII 2009 2010 32 NELP-IX 2010 2012 19 initiative to boost the upstream hydrocarbon sector, E&P industry has transitioned from Production Sharing Contracts (PSCs) to Revenue Sharing Contracts (RSCs). This strategic shift aims to achieve greater transparency, operational flexibility, risk-sharing, and increased investor appeal. RSCs simplify revenue sharing, reduce bureaucratic complexities, and create a conducive environment for oil and gas
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