Upstream Regulations and NELP-Evolution & Analysis

Group - 2

Abhas Mittal-20141001

Apurva Mittal-20141009

Parth Mehta-20141047

Pranjal Kishore-20141050

Rajan Zaveri -20141056

Upstream Segment Directly regulated by MOPNG with the technical support

of DGH

Laws and Regulations Governing the Sector

Oilfields (Regulation and Development) Act 1948

Petroleum and Natural Gas Rules 1959

The Oil Industry (Development) Act, 1974

The Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976

NELP

CBM Policy

NELP- New Exploration Licensing Policy Conceptualized by Amit Singh on request of GOI in 1997-

98. To provide level playing field in the Business of Exploration

and Production. In total there are 26 basins in India with an area of about

3.2 million sq. Km. At present just over 1 million sq. Km area under 18 basins is

held by ONGC and OIL. Till date there have been biddings for basins under 9 NELP

regimes. A total of almost 400 Production Sharing Contracts (PSCs)

have been signed under NELP.

Objective of NELP To provide level playing field in terms of competition

for all investors in the business of Exploration and Production.

To provide several concessions and incentives to both Public and Private sector companies .

To boost the overall Exploration and Production industry in the Country by promoting the use of better technology and hence improving the contribution of Domestic resources in the Energy basket of the country.

Need of a policy like NELP To achieve self sufficiency in terms of the demand of

crude and Natural Gas in the country.

To reduce the Import bill of the country to a huge extent.

To make optimum utilization of the Natural resources of the country that would otherwise have been wasted.

To promote healthy competition in the sector amongst the Public and Private players.

NELP 1 and 2 Bids were invited on 8 January ‘99 for 48 blocks of Oil and

Natural Gas.

12 of these were Deepwater, 26 were Shallow water offshore blocks and 10 were Onshore blocks.

PSC’s signed for 24 blocks out of which only 11 blocks are under operation.

NELP -2. The bids were invited on 15 dec’00 for 25 blocks.

8 Deepwater, 8 shallow offshore and 9 onshore.

PSCs signed for 23 of these blocks. Out of which only 4 are currently operational.

NELP 3 and 4 Third round bidding was invited on march 27 ’02 for

27 blocks. Out of these 9 were Deepwater, 7 shallow offshore and 11 onshore blocks.

PSCs were signed for 23 blocks out of which 19 blocks are currently in operation.

Fourth round of bidding was invited on 8 May’03 for 24 blocks out of which 12 were deep water, 1 shallow offshore and 11 onshore.

Out of these 20 PSCs were signed and 19 of them are still operational.

NELP- 5 and 6 For fifth round bids were invited for 20 blocks for

which almost 70 bids were received from around 50 global and domestic majors.

Of these 6 were deepwater, 2 shallow offshore and 12 onshore. PSCs were signed for all 20 blocks some of which are still awaiting drilling permission.

In the sixth round, 16 prospective basins consisting of 25 onshore, 6 shallow water and 24 deepwater blocks were there.

PSCs signed for 52 of these blocks and all of them are currently active.

NELP- 7, 8 and 9 For 7th round, bids invited for 57 blocks in 18 sedimentary

basins consisting 29 onshore, 9 shallow water and 19 deepwater blocks.

On Dec. 22’ 08 PSCs signed for 41 blocks.

In round 8, GOI offered 31 PSCs on June 30’ 10.

There were 8 deepwater, 11 shallow water and 12 onshore blocks.

The last round of bidding was NELP 9.

A total of 33 blocks were offered and ONGC bid successfully for 10 of them. OIL also managed to get 10 blocks.