India’s Hydrocarbon Outlook 2024 23 A Report on Exploration & Production Activities b. Hydrocarbon Exploration and Licensing Policy (HELP) In a landmark move to revitalize India’s oil and gas exploration sector, the government introduced the Hydrocarbon Exploration Licensing Policy (HELP) on March 30th, 2016. This policy marked a significant shift, transitioning from a Production Sharing mechanism to a Revenue Sharing model. This streamlined approach reduces government intervention in day-to-day operations, fostering a more business-friendly environment (Ease of Table 1.5: DSF Round wise Award Round Launch Year Signing Year No. of Contract Areas Awarded DSF-I 2016 2017 30 DSF-II 2018 2019 24 DSF-III 2021 2022 31 exploration. The objective is to enhance efficiency, attract investment, and foster a competitive landscape within India’s energy industry. Accordingly, two major policies formulated to implement the Revenue Sharing Mechanism are : a. Discovered Small Field Policy (DSF) In 2015, the Indian government introduced a significant policy shift for the oil and gas sector with the Discovered Small Field (DSF) policy. This policy aims to unlock the potential of previously discovered, but undeveloped, small hydrocarbon reserves. DSF offers attractive fiscal terms to investors and companies, including the elimination of oil cess on crude oil production, reduced royalty rates, and freedom in pricing and marketing of oil and gas. Additionally, there’s no upfront signature bonus or carried interest for National Oil Companies (NOCs). This translates to a more streamlined and commercially viable development process for these fields. The DSF policy operates under a revenue-sharing mechanism, granting contractors greater autonomy with minimal government oversight. Three successful bidding rounds have been conducted so far, awarding a total of 85 Contract Areas. As on 31st March, 2024, 55 Contract Areas are active. Introduction of DSF has demonstrably revitalized the sector by attracting over new E&P players, bringing fresh investment and expertise to Indian exploration and production (E&P) activities. Contract Areas awarded round wise are as below: Further details about DSF can be found at Chapter-6. Doing Business). A key component of HELP is the Open Acreage Licensing (OAL) mechanism. This empowers exploration companies to select their own blocks, eliminating the need to wait for government-led bidding rounds. The first bid round under OAL was launched in January 2018, and since then, eight successful rounds have been conducted within a six-year period. These eight rounds have resulted in the awarding of a staggering 144 exploration blocks, encompassing a vast area of 2,42,057 sq. km., providing a significant boost to E&P activities in India.
RkJQdWJsaXNoZXIy MTE0OTM0OQ==