Hydrocarbon Exploration and Licensing Policy (HELP)
The Union Cabinet has approved the Hydrocarbon Exploration and Licensing Policy (HELP).The main facets of this policy are uniform license for exploration and production of all forms of hydrocarbon, an open acreage policy, easy to administer revenue sharing model, marketing and pricing freedom for the crude oil and natural gas produced. The decision is expected to enhance domestic oil & gas production, bring substantial investment in the sector and generate sizable employment. The policy is also aimed at enhancing transparency and reducing administrative discretion. The uniform licence will enable the contractor to explore conventional as well as unconventional oil and gas resources including CBM, shale gas/oil, tight gas and gas hydrates under a single license. In the lines of NELP, cess and import duty will not be applicable on blocks awarded under the new policy.
New Price Formula for Undeveloped Gas Finds cleared by Union Cabinet
March 10, 2016
Cabinet Committee on Economic Affairs (CCEA) approved a new price formula for undeveloped gas discoveries in difficult areas, which will lead to a near-doubling of rates. While domestically-produced gas is currently priced at an average of rates in gas-surplus countries like the US, Canada and Russia, for deep-sea discoveries yet to be developed, the CCEA approved a price indexed to cost of alternative fuels – naphtha and fuel oil as well as imported Liquefied Natural gas (LNG). CCEA has stated that the price will be the lowest of weighted average of fuel oil and imported LNG or weighted average of fuel oil, naphtha and imported coal.
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