The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that the policy to auction small oil and gas fields has been notified vide Ministry of Petroleum and Natural Gas’s resolution dated 14.10.2015 which is available at http://www.petroleum.nic.in.      

Salient Features of the Policy are :-

·                  Revenue Sharing contract: A simple and easy to administer contractual model in line with Government’s effort to promote ‘Ease of doing business’.

·                  Upto 100% FDI participation by foreign companies, joint ventures.

·                  Single license for Conventional & Non-conventional hydrocarbon.

·                  No restriction on exploration activity during contract period: Contractor will be allowed to carry out exploration during entire contract duration.

·                  Crude Oil & Gas Pricing and Sale: Freedom to sell crude oil exclusively in domestic market. For Gas pricing, contractor will have freedom for pricing of gas produced.

·                  Custom duty: Customs duty is exempted on import of goods and services for Petroleum operations

·                  Oil Cess : No Oil Cess will be applicable on crude oil production

 In spite of natural decline from existing ageing mature fields, oil & gas companies have been able to maintain the level of Production. The oil & gas Production details are placed below:

Details of oil and gas production in the last five years

Country Crude Oil Production in last 5 Years (MMT)

Country Natural Gas Production in last 5 Years ( BCM)

            Government has taken various policy and administrative initiatives to enhance the performance of  hydrocarbon sector in the country.  Some of the policy decisions taken by the Government in recent years are as under:

·                     Government has approved a new Hydrocarbon and Exploration Licensing Policy (HELP) and same has been notified on 30^th March 2016.

·                     Marketing and Pricing freedom for new gas production from Deepwater, Ultra Deepwater and High Pressure-High Temperature areas subject to certain conditions.

·                     Policy for grant of extension to the Production Sharing Contracts of 28 Small and medium sized discovered blocks.

·                     Policy Framework for relaxation, extensions and clarifications at the development and production stage under PSC regime for early monetization of hydrocarbon discoveries.

·                     New Domestic Natural Gas price Guidelines, 2014: Under these guidelines, gas price has been linked to the market/ important hub prices.

·                     Appraisal of about 1.5 million sq. km un-appraised area of the Indian Sedimentary Basins.

·                     Re-assessment of Hydrocarbon Resources.

·                     National Data Repository has been setup.

·                     Policy for exploration and exploitation of Shale Gas/Shale Oil resources by NOCs under the Nomination Regime.

·                     Policy for exploration in the Mining Lease (ML) areas after the expiry of exploration period.

·                     Policy on Non–exclusive Multi-client Speculative Survey for assessment of unexplored sedimentary basins has been operationalized

Courtesy – Press Information Bureau, Government of India