India attracted Rs. 3,07,368 crore (US$ 36 billion) investment, 177 discoveries in pre-2014 oil gas blocks: Oil Ministry Report

India's oil and gas sector has seen substantial investment and exploration success under the New Exploration Licensing Policy (NELP) and Open Acreage Licensing Policy (OALP). Before 2014, nine NELP bid rounds attracted over Rs. 3,07,368 crore (US$ 36 billion) in investment, yielding 177 oil and gas discoveries. NELP awarded exploration blocks to bidders, promising maximum exploration and allowing cost recovery before profit sharing with the government. However, challenges such as clearance delays and cost recovery disputes under the Production Sharing Contract (PSC) regime led to project delays and disagreements. In 2016 the Hydrocarbon Exploration and Licensing Policy (HELP) was introduced, replacing the PSC model with a Revenue Sharing Contract (RSC) model. This shift aimed to reduce operational complexities, increase transparency, and provide greater autonomy to operators, aligning with global best practices. Under RSCs, contractors and the government share revenue from hydrocarbon sales at pre-agreed percentages, regardless of exploration and production costs.

From 2018 to 2022, eight OALP rounds saw Rs. 11,697 crore (US$ 1.37 billion) invested in exploration, resulting in six oil and four gas discoveries. Major international companies like British Gas, Cairn Energy, Eni, BHP Billiton, and BP participated in these rounds, bringing advanced technologies and capital. The Discovered Small Field (DSF) policy, introduced in 2015, aimed to monetize small and marginal fields. As of now, 51 out of 85 DSF contract areas are active. The government continues to drive exploration with ongoing OALP and DSF bid rounds, signing contracts for 28 blocks in the OALP-IX round and offering a 10th round. These efforts reflect a commitment to improving the ease of business and fostering a competitive environment in India's oil and gas sector.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.