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Hydrocarbon Exploration and Licensing Policy (HELP)

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<p>Hydrocarbon Exploration and  Licensing Policy (HELP) is a policy adopted by Government of India on  10.03.2016 indicating the new contractual and fiscal model for award of  hydrocarbon acreages towards exploration and production (E&amp;P). HELP is  applicable for all future contracts to be awarded. </p>
 
<p>Hydrocarbon Exploration and  Licensing Policy (HELP) is a policy adopted by Government of India on  10.03.2016 indicating the new contractual and fiscal model for award of  hydrocarbon acreages towards exploration and production (E&amp;P). HELP is  applicable for all future contracts to be awarded. </p>
<p>HELP replaces the present policy regime  for exploration and production of oil and gas, known as New Exploration  Licensing Policy (NELP), which has been in existence for 18 years.</p>
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<p>HELP replaces the present policy regime  for exploration and production of oil and gas, known as [http://www.arthapedia.in/index.php?title=New_Exploration_and_Licensing_Policy_(NELP) New Exploration  Licensing Policy (NELP)], which has been in existence for 18 years.</p>
 
<p><strong>&nbsp;</strong></p>
 
<p><strong>&nbsp;</strong></p>
 
<p><strong>Features of HELP</strong><br>
 
<p><strong>Features of HELP</strong><br>
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   <li><strong>[http://www.arthapedia.in/index.php?title=Revenue_Sharing_Contract_(RSC) Revenue Sharing]</strong> <strong>Model:</strong>  Present fiscal system of [http://www.arthapedia.in/index.php?title=Production_Sharing_Contract_(PSC) production sharing contract (PSC)] is replaced&nbsp;by an easy to  administer&nbsp;&ldquo;revenue sharing model&rdquo;.&nbsp;The earlier contracts were based  on the concept of profit sharing where profits are shared between Government  and the contractor after recovery of cost. Under the profit sharing  methodology, it became necessary for the Government to scrutinize cost details  of private participants and this led to many delays and disputes. Under the new  regime, the Government will not be concerned with the cost incurred and will  receive a share of the gross revenue from the sale of oil, gas etc. Bidders will be required to quote revenue share in their bids and  this will be a key parameter for selecting the winning bid.&nbsp; They will  quote a different share at two levels of revenue called &ldquo;lower revenue point&rdquo;  and &ldquo;higher revenue point&rdquo;.&nbsp; Revenue share for intermediate points will be  calculated by linear interpolation.&nbsp; The bidder giving the highest net  present value of revenue share to the Government, as per transparent  methodology, will get the maximum marks under this parameter.</li>
 
   <li><strong>[http://www.arthapedia.in/index.php?title=Revenue_Sharing_Contract_(RSC) Revenue Sharing]</strong> <strong>Model:</strong>  Present fiscal system of [http://www.arthapedia.in/index.php?title=Production_Sharing_Contract_(PSC) production sharing contract (PSC)] is replaced&nbsp;by an easy to  administer&nbsp;&ldquo;revenue sharing model&rdquo;.&nbsp;The earlier contracts were based  on the concept of profit sharing where profits are shared between Government  and the contractor after recovery of cost. Under the profit sharing  methodology, it became necessary for the Government to scrutinize cost details  of private participants and this led to many delays and disputes. Under the new  regime, the Government will not be concerned with the cost incurred and will  receive a share of the gross revenue from the sale of oil, gas etc. Bidders will be required to quote revenue share in their bids and  this will be a key parameter for selecting the winning bid.&nbsp; They will  quote a different share at two levels of revenue called &ldquo;lower revenue point&rdquo;  and &ldquo;higher revenue point&rdquo;.&nbsp; Revenue share for intermediate points will be  calculated by linear interpolation.&nbsp; The bidder giving the highest net  present value of revenue share to the Government, as per transparent  methodology, will get the maximum marks under this parameter.</li>
 
   <li><strong>Marketing and Pricing  Freedom</strong> has been granted, subject  to a ceiling price limit, for new gas production from  Deepwater, Ultra Deepwater and High Pressure-High Temperature Areas. The policy  provides marketing and pricing freedom to the gas production from existing  discoveries which are yet to commence commercial production as on 1.1.2016 as  well as for future discoveries<sup class="reference">[[#ref1|[1]]]</sup>. Considering the  imperfections in gas markets in India, and to protect the interests of the  consuming sector, a ceiling based on the landed cost of the alternate fuels has  been imposed. The ceiling price shall be the, lowest of the  </li>
 
   <li><strong>Marketing and Pricing  Freedom</strong> has been granted, subject  to a ceiling price limit, for new gas production from  Deepwater, Ultra Deepwater and High Pressure-High Temperature Areas. The policy  provides marketing and pricing freedom to the gas production from existing  discoveries which are yet to commence commercial production as on 1.1.2016 as  well as for future discoveries<sup class="reference">[[#ref1|[1]]]</sup>. Considering the  imperfections in gas markets in India, and to protect the interests of the  consuming sector, a ceiling based on the landed cost of the alternate fuels has  been imposed. The ceiling price shall be the, lowest of the  </li>
   <li>Fuel oil import landed price  </li>
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   <ul><li>Fuel oil import landed price  </li>
 
   <li>Weighted average import landed  price of substitute fuels (0.3 x price of imported coal + 0.4 x price of  imported fuel oil + 0.3 x price of imported naphtha) and  </li>
 
   <li>Weighted average import landed  price of substitute fuels (0.3 x price of imported coal + 0.4 x price of  imported fuel oil + 0.3 x price of imported naphtha) and  </li>
   <li>LNG import landed price. </li>
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   <li>LNG import landed price. </li><ul>
 
</ul>
 
</ul>
 
<p>&nbsp;</p>
 
<p>&nbsp;</p>
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   <tr>
 
   <tr>
 
     <td valign="top"><strong>Exploration    Period </strong><strong> </strong></td>
 
     <td valign="top"><strong>Exploration    Period </strong><strong> </strong></td>
    <td valign="top">Onland and Shallow Water- 7 years <br>
 
      Deepwater- 8 years </td>
 
 
     <td valign="top">Onland and Shallow Water- 8 years <br>
 
     <td valign="top">Onland and Shallow Water- 8 years <br>
       Deepwater &amp; Ultra-deepwater - 10 years </td>
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      Deepwater- 10 years </td>
 +
    <td valign="top">Onland and Shallow Water- 7 years <br>
 +
       Deepwater &amp; Ultra-deepwater - 8 years </td>
 
   </tr>
 
   </tr>
 
   <tr>
 
   <tr>

Latest revision as of 17:29, 18 March 2016

Hydrocarbon Exploration and Licensing Policy (HELP) is a policy adopted by Government of India on 10.03.2016 indicating the new contractual and fiscal model for award of hydrocarbon acreages towards exploration and production (E&P). HELP is applicable for all future contracts to be awarded.

HELP replaces the present policy regime for exploration and production of oil and gas, known as New Exploration Licensing Policy (NELP), which has been in existence for 18 years.

 

Features of HELP
Four main aspects of HELP are:

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