(a) whether there have been major lacunae in the New Exploration Licensing
Policy (NELP) which governs the upstream oil and gas sector;
(b) if so, the details thereof and the steps taken by the Government in this regard;
(C) Whether under the NELP, contractors who have won licenses for exploration and have signed
production sharing contracts (PSCs) with the Government have the freedom to market the gas at
prices discovered through `arms-length negotiations`; and
(d) if so, the facts thereof?;
MINISTER OF THE STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI JITIN PRASADA)
(a) & (b) No, Madam. New Exploration Licensing Policy (NELP) provides for level playing field for National
Oil Companies, Private and Foreign Companies and bids are invited through International Competitive bidding
process based on transparent quantifiable Bid Evaluation Criteria
(c) & (d) Under NELP Production Sharing Contract(PSC), for the purpose of sales-in the domestic market
in India, the Contractor has freedom to market the gas; however, in terms of Article 21.1 of PSC, any
proposal by the Contractor relating to discovery and production of Natural Gas from the Contract Area
shall be made in the context of the Government`s policy for the utilization of natural gas and shall
take into account the objectives of the Government to develop its resources in the most efficient
manner and to promote conservation measures. Further, as per Article 21.6 of PSC, the Contractor
shall endeavour to sell all Natural Gas produced and saved from the contract area at arms length
prices to the benefits of Parties to the Contract and is required to submit a price formula or
basis, to the Government for approval prior to the sale of gas.