Under Open Acreage Licensing Policy (OALP) as part of Hydrocarbon Exploration and Licensing Policy (HELP), Exploration & Production companies are allowed to put in offers at any time by submitting an initial Expression of Interest (EoI) indicating the area which it wishes to take up for exploration.
Based on EoIs received, the Government will carve out the blocks/fields and put them up for International Competitive Bidding. The first cycle for submitting EoI was opened from 1 July to 15 Nov 2017. Total 57 EoI were received during this period, out of which 48 are for onland basins, 8 are for shallow water basins and 1 is for deep-water basin.
The Government has finalized 55 blocks for international competitive bidding. Total area admissible under these EoIs is 59282 sq. km.
As part of the competitive bids, the bidders are required to bid the percentage of revenue that they will share with the Government at Lower Revenue Point and Higher Revenue Point. The details of the revenue share with the Government will be finalized on completion of the bidding process and award of the contracts.
Hydrocarbon Exploration & Licensing Policy (HELP)
Hydrocarbon Exploration and Licensing Policy (HELP) is a paradigm shift from the Production Sharing Contract (PSC) under New Exploration Licensing Policy (NELP). It is simple and easy to administer Revenue Sharing Model (RSC).
The salient features and benefits of new Hydrocarbon Exploration & Licensing Policy (HELP) are:
- Single License for conventional and unconventional Hydrocarbons
- Easy to administer Revenue Sharing Model
- Marketing & pricing freedom for the Crude oil & Natural gas produced
- Enhanced exploration phase
- Zero royalty rates for deep water and ultra deep water blocks for first seven years
- Equal weightage to work programme and fiscal share
- Operation freedom to operator with minimum regulatory burden (Ease of doing business)
- No cost recovery and micro-management by the Government
- Exemption from OIDB Cess