INDIA: Hydrocarbon Exploration and Licensing Policy (HELP)

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
2016
Scope: 
National
Document Type: 
Overarching Policy
Economic Sector: 
Energy
Energy Types: 
Oil, Gas
Issued by: 
Ministry of Petroleum and Natural Gas
Source: 
Ministry of Petroleum and Natural Gas
File: 
Hydrocarbon Exploration and Licensing Policy (HELP)
Overall Summary: 
The Hydrocarbon Exploration and Licensing Policy (HELP) is an exploration and production policy of the Government of India in the hydrocarbon sector, adopted in 2016. Four main facets of this policy are: (a) uniform license for exploration and production of all forms of hydrocarbon, (b) an open acreage policy, (c) easy to administer revenue sharing model and (d) marketing and pricing freedom for the crude oil and natural gas produced.
Governance
Energy management principles: 
2. Single License for Conventional and Non-conventional Hydrocarbons. A uniform license to enable E&P operators to explore and extract all hydrocarbon resources covered under the Oilfields Regulation and Development (ORD) Act, 1948, and Petroleum and Natural Gas (PNG) Rules, 1959. This license will enable the contractor to explore conventional and unconventional oil and gas resources including CBM, Shale Gas/Oil, Tight Gas, Gas Hydrates and other resource to be identified in future which fall within the definition of "Petroleum" and "Natural Gas"under PNG Rules, 1959. 3. Open Acreage Licensing Policy (OALP). E&P companies will be allowed to put in offers for blocks at any time by submitting an initial Expression of Intesest (EOI) indicating the area (in terms of grids) which it wishes to take up modalities for operationalization of OALP will be notified separately. 4. Fiscal Regime. Present fiscal system of production sharing based on Pre-Tax Investment Multiple (PRIM) and cost recovery / production linked payments will be replaced by a revenue sharing model. The contractor shall pay biddable Government share of revenue (Net of royalty) as per Revenue Sharing Contract. 5. Royalty. Royalty rates for onland blocks will be 12.5% for oil and 10% for gas at par with NELP. However, in order to incentivize offshore exploration which involves higher risks and costs, a graded system of reduced royalty rates will be applicably [Please, see the pdf version of the document for royalty rates]