Page 116 - DGH_Annual_Report

116 INDIA'S HYDROCARBON OUTLOOK 2024-2025

6.8 Hydrocarbon Exploration and other benefits in addition to mentioned above,
Licencing Policy (HELP) some of the features are as follows:

The Government of India notified the More weightage to Work Programme than
Hydrocarbon Exploration and Licensing Policy the Revenue Share for Category-I Basin.
(HELP) on 30th March 2016 to revamp the E&P
sector by shifting from the Production Sharing Revenue Share from Category II & III type
Contract (PSC) regime to a more transparent of basins were removed except in case of
Revenue Sharing Contract (RSC) model. A key windfall gain.
feature of HELP was the introduction of the Open Concession in Royalty rates
Acreage Licensing Policy (OALP), which allowed
companies to select and propose exploration Flexibility to revise FDP

blocks throughout the year, without waiting for
formal bidding rounds. This reform significantly Liberal freedom to Transfer/Exit the blocks
improved the ease of doing business by reducing No obligation to run Drill Stem Test
government intervention in operational matters
and enabling investor-driven exploration. The Introduction of alternate dispute resolution

first OALP Bid Round was launched in January mechanism and Empowered Coordination
2018, marking the operational rollout of this Committee (ECC) for expediting statutory
progressive licensing framework. clearances/approvals.
HELP comes with attractive and liberal terms. To enhance the participation, the amendments
Some of the Salient features of the Policy is given in the bid documents for bid round VIII has been
below: - carried out. The objective of such amendments
is to address the issues of existing operators
One single license for exploring of all types which they are facing in existing contractual
of hydrocarbons both conventional and framework and to make them compatible for
unconventional the needs of global E&P players so that the bid

Revenue Sharing model instead of cost documents can be made globally competitive.
recovery Moreover, these amendments bring in more
ease of doing business in the upstream sector of
Companies can choose and propose their India. Major of the modifications are listed below:
own exploration blocks
Larger acreage areas upto 20,000 Sq.km for
Expression of Interest (EoI) can be submitted play based exploration
any time during the year
Modification in modalities for carving out
Freedom to sell oil and gas at market prices open acreage blocks with partial 1’x1’ unit.

Lower royalty rates, especially in difficult and Modifications in Operatorship Experience
frontier areas for Deep/ Ultra-deep blocks bidding to
maximize the participation.
No oil cess under HELP
Removal of Dual Liquidated Damage for
Exploration is allowed throughout the commencement of Development and
contract period Production Operations

Simple and transparent bidding process Enhanced Stabilization Period for
incentivizing early monetization of
To make Policy more attractive, Government Discoveries.
further notified the policy reforms on 28th
February 2019, where many of the processes 3 Year Retention Period for Sub-Commercial
and approvals were relaxed to promote “Ease of Discoveries
Doing Business”. These reforms were focused
to increase exploration activities, attract Modified provisions for change in

domestic and foreign investment in unexplored/ Consortium during EOI and bidding stage.
unallocated areas of sedimentary basins. These
reforms were made applicable from OALP Enhanced Scope of Force Majeure
Round IV onwards. These reforms provide many