Hydrocarbon Exploration Reforms

On Feb 19, 2019, the union cabinet approved “Reforms in Exploration and Licensing Policy for enhancing domestic exploration and production of oil and gas.” The main highlights of this policy reforms are:

i. Increasing exploration activities in unexplored / unallocated areas
a. In basins (Category II & II) where presently no commercial production is there, exploration blocks would be bid out exclusively on the basis of exploration work programme without any revenue or production share to government. Royalty and statutory levies, however, will be paid by contractor.