Oil exploration will remain a challenge for govts

India’s hydrocarbon space will test the patience and policy consistency of the government of the day in the coming years as the country’s exploration policy enters a transition phase.

Life of the New Exploration Licensing Policy (NELP) regime may remain only for the next 10-15 years, as the country’s entire oil and gas exploration as well as production business is shifting to Hydrocarbon Exploration Licensing Policy (HELP)-Open Acreage Licensing Programme (OALP).

In many countries there are multiple models — revenue sharing, production sharing or customised — but these are places where the oil industry plays a dominant role.

In India there are mainly three different categories — nomination basis: areas given prior to auction rounds; pre-NELP and NELP: where areas were given through auctions based on production sharing contracts; and HELP regime — a uniform licensing regime based on revenue sharing model and OALP.