Oil and Gas Sector – HELP, Open Acreage Policy, etc.

New regime in oil and gas exploration

  1. Context: Govt effected major policy changes in oil & gas exploration
  2. Revenue sharing: Prospective replacement of profit-sharing in hydrocarbon exploration with a revenue-sharing formula
  3. Benefit: It may help prevent future disputes over pricing and cost recovery such as one with Reliance Industries Ltd (RIL)
  4. License Policy: A transparent single license and policy framework for oil, gas and coal-bed methane (CBM) exploration
  5. At present there is a different policy for each form of hydrocarbons
  6. Pricing: Freeing gas pricing from the new blocks and existing discoveries which are yet to commence production

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