Summary:

The New Exploration Licensing Policy (NELP) and Open Acreage Licensing Policy (OALP) have attracted significant investment to India’s oil and gas sector. Before 2014, NELP rounds raised approximately Rs. 3,07,368 crore (US$ 36 billion), leading to 177 discoveries. In 2016, the Hydrocarbon Exploration and Licensing Policy (HELP) replaced the PSC model with Revenue Sharing Contracts (RSCs), improving transparency and addressing cost recovery and delay issues.

From 2018 to 2022, eight OALP rounds generated Rs. 11,697 crore (US$ 1.37 billion) in exploration funding, resulting in six oil and four gas discoveries. Major companies like British Gas, Cairn Energy, and BP contributed advanced technology and capital. The 2015 Discovered Small Field (DSF) policy aimed to monetize small fields, with 51 of 85 locations now active. The government continues to drive exploration through ongoing OALP and DSF rounds, improving business ease and competitiveness.

Source: IBEF

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