Page 13 - DGH_Annual_Report

Evolution of Oil and Gas Exploration in India 13

Across nine bid rounds: Two transformative policy frameworks were
launched:
• 254 blocks were awarded.
• Discovered Small Field (DSF) Policy (2015):
• Key breakthroughs included commercial oil
in Rajasthan and deepwater gas in Krishna- The Discovered Small Field (DSF) Policy was
Godavari. launched to monetize small and marginal
oil and gas fields relinquished by National
One of the most defining milestones under Oil Companies (NOCs), which were earlier
NELP was the discovery of the KG-DWN-98/3 considered commercially unviable under
block (commonly known as KG-D6) in the conventional regimes. Recognizing the
Krishna-Godavari Basin by Reliance Industries need to unlock these stranded assets, the
Limited. This deepwater block yielded major policy introduced a simplified and investor-
gas discoveries in the D1 and D3 fields and friendly framework that included marketing
marked India’s first significant success in ultra- and pricing freedom, no signature bonus
deepwater exploration. The field commenced requirements, and reduced royalty rates.
production in 2009 and, at its peak, accounted Crucially, DSF rounds did not mandate prior
for nearly 40% of the country’s domestic gas E&P experience as a qualifying criterion,
production, helping reduce import dependence significantly lowering entry barriers and
and validating the deepwater potential of Indian enabling broader participation.
offshore acreage.
This inclusive approach led to a surge in
NELP catalyzed a wave of investment, improved interest from new entrants, including first-
basin knowledge, and expanded India’s offshore time domestic operators, emerging energy
frontiers In parallel with the launch of NELP, the firms, and non-traditional investors. Awarded
Government of India also approved the Coal under a transparent revenue-sharing
Bed Methane (CBM) Policy during the 1997–1999 contract model, DSF rounds attracted
period to harness unconventional gas resources. fresh capital, diversified the operator base,
This policy created a dedicated legal and fiscal and brought new energy to fields that
framework to promote CBM exploration and had long remained undeveloped. The
production from coal-bearing basins, separate policy has since proven effective in reviving
from the existing petroleum legislation. Over stranded resources, boosting domestic
the years, this initiative has matured into a production, and stimulating competition in
commercially viable segment of India’s gas India’s upstream sector.• Hy dr ocar bon
portfolio. As of 2024–25, CBM production stands Exploration and Licensing Policy (HELP,
at approximately 2.2 MMSCMD, making a 2016):
meaningful contribution to domestic natural
gas supply and energy diversification. Replacing the PSC framework, HELP introduced:
1.10 Revenue Sharing and Renewed o A unified license for all hydrocarbons.
Investment (Post-2015)
o Open Acreage Licensing Programme
To further streamline exploration operations and (OALP) for continuous block selection.
align with global best practices, the Government o Full pricing and marketing freedom.
transitioned to Revenue Sharing Contracts
(RSCs) – a simpler, more transparent fiscal HELP and DSF together have enhanced investor
model. confidence and reinvigorated India's upstream
momentum.