(a) whether there has been any change in the auction methods of blocks discovered after the implementation of flexible Hydrocarbon Exploration Licensing Policy in the country;
(b) if so, the details thereof;
(c) whether any scheme has been formulated to strengthen the developing energy sector in the country; and
(d) if so, the details there of ?
MINISTER IN THE MINISTRY OF PETROLEUM & NATURAL GAS
(SHRI HARDEEP SINGH PURI)
(a) to (d) A statement is laid on the table of the house.
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STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF THE LOK SABHA STARRED QUESTION NO. 306 BY SHRI ANIL FIROJIYA TO BE ANSWERED ON 24.03.2022 REGARDING HYDROCARBON EXPLORATION LICENSING POLICY.
(a) & (b): Government notified a transformative policy namely Hydrocarbon Exploration and Licensing Policy (HELP) on 30th March, 2016 to increase investment in domestic exploration and production sector. The major thrust of the policy was ease of doing business with minimal Government intervention. Deepening the reforms further, Government on 28th February, 2019 notified further reforms in HELP, inter alia, bringing changes in auction methodology. With the introduction of these reforms, Government moved from ‘Maximisation of Revenue to Government’ to ‘Maximisation of Production’. The major changes, inter alia, include:
i. Indian Sedimentary basins were classified into three categories, namely Category-I, II and III, based on hydrocarbon prospectivity and commerciality. In Category-II and Category-III basins, where prospectivity is low, the areas are to be awarded exclusively based on Work Program which bidder commits to undertake without any Revenue Share to Government. Revenue is to be shared with Government in case of windfall gain i.e. when revenue exceeds USD 2.5 billion in a financial year.
ii. In Category-I basins, where commercial reserves are established, for awarding the blocks, emphasis was shifted to Work Programme by enhancing its weightage to 70%. Remaining 30% weightage was allocated to Revenue to the Government. This was 50% each earlier. Further, to prevent speculative bidding, upper ceiling of 50% was also imposed on Revenue Share to Government.
iii. To provide more opportunities to bidders, Expression of Interest submission cycle was increased from twice to thrice in a year.
(c) & (d): In addition to reforms under HELP, several other policy initiatives to strengthen the energy sector in the country have been taken which, inter alia, include:
I. A National Data Repository (NDR) was established in 2017 where entire E&P Data of the country is available for potential bidders to help carve out blocks of interest.
II. Appraisal of un-appraised areas in sedimentary basins under National Seismic Programme, 2017 to enhance availability of E&P Data to potential bidders.
III. Discovered Small Field (DSF) Policy, 2015: This allowed starting/restarting production from unmonetised discoveries of ONGC/OIL, which could not be put on production due to various reasons.
IV. Gas reforms to incentivise production of gas.
V. In addition, a large number of reforms were undertaken to resolve the pending issues in the existing Contracts, streamlining processes for ease of doing business etc. A list of Reforms is attached at Annexure.
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