Hydrocarbon Exploration and Licensing Policy

11th March, 2016

Hydrocarbon Exploration and Licensing Policy

The policy is also aimed at enhancing transparency and reducing administrative discretion.

Four main facets of this policy are:

     i.           uniform license for exploration and production of all forms of hydrocarbon,

     ii.           an open acreage policy,

     iii.           easy to administer revenue sharing model and

     iv.           marketing and pricing freedom for the crude oil and natural gas produced.

Uniform licence 

It will enable the contractor to explore conventional as well as unconventional oil and gas resources including CBM, shale gas/oil, tight gas and gas hydrates under a single license. 

Open Acreage (is an amount of land that is determined by using the measurement of “acres) policy

It will enable E&P companies choose the blocks from the designated area. 

Revenue Sharing

Govt. will receive a share of the gross revenue from the sale of oil, gas etc.

Pricing freedom

A graded system of royalty rates have been introduced, in which royalty rates decreases from shallow water to deep water and ultra-deep water.

Earlier Scheme:

New Exploration Licensing Policy (NELP)

It is in existence for 18 years.

NEW EXPLORATION LICENSING POLICY