DMPQ: What is HELP? What are its key provisions?

HELP is the new Hydrocarbon exploration Licensing policy. The key features of HELP are as follows:

 

  • India has announced HELP, which offers single license to explore conventional and unconventional oil and gas resources.
  • The new policy also gives the investors the much needed freedom in pricing and marketing for crude oil and natural gas.
  • There will be a uniform licensing systemwhich will cover all hydrocarbons, under a single license and policy framework.
  • Contracts will be based on ‘biddable revenue sharing’. Bidders will be required to quote revenue share in their bids and this will be a key parameter for selecting the winning bid.
  • An ‘Open Acreage Licensing Policy’will be implemented whereby a bidder may apply to the Government seeking exploration of any block not already covered by exploration. This will enable a faster coverage of the available geographical area.
  • A concessional royalty regime will be implemented for deep water (5%) and ultra-deep water (2%) areas. In shallow water areas, the royalty rates shall be reduced from 10% to 7.5%.
  • The contractor will have freedom for pricing and marketingof gas produced in the domestic market on arms length basis.
  • To safeguard the Government revenue, the Government’s share of profit will be calculated based on the higher of prevailing international crude price or actual price.

 

OPSC  Notes brings Prelims and Mains programs for OPSC  Prelims and OPSC  Mains Exam preparation. Various Programs initiated by OPSC  Notes are as follows:- For any doubt, Just leave us a Chat or Fill us a querry––

[jetpack_subscription_form title=”Subscribe to OPSC Notes” subscribe_text=”Never Miss any OPSC important update!” subscribe_button=”Sign Me Up” show_subscribers_total=”1″]