After the Nomination era till late 1970s, Pre-NELP Exploration era (1980-95) and Pre-NELP Field rounds (1992-93), Government of India formulated a policy called as New Exploration Licensing Policy in 1997.The main objective was to attract significant risk capital from Indian and Foreign companies, state of art technologies, new geological concepts and best management practices to explore Oil and Gas resources in the country to meet rising demands of Oil and Gas. This NELP policy was approved in 1997 and it became effective in February, 1999.
New Exploration Licensing Policy (NELP) was brought by the Government of India, to provide a level playing field to both Public and Private sector companies in exploration and production of hydrocarbons with Directorate General of Hydrocarbons (DGH) as a nodal agency for its implementation.
Government of India’s commitment to the liberalization process is reflected in NELP, which has been conceptualized keeping in mind the immediate need for increasing domestic production. To attract more investment in oil exploration and production,
NELP has steered steadily towards a healthy spirit of competition between National Oil Companies and private companies. This has been a landmark event in the growth of the upstream oil sector in India.
The foreign and Indian private companies are invited to supplement the efforts of National Oil Companies in the discovery of hydrocarbons.
The development of E&P sector has been significantly boosted through this policy of Government of India, which brought major liberalization in the sector and opened up E&P for private and foreign investment, where 100% Foreign Direct Investment (FDI) is allowed.
Under NELP, which became effective in February 1999, acreages are offered to the participating companies through the process of open competitive bidding. The terms and conditions of this open and transparent policy rank amongst the most attractive in the world.
Since then licenses for exploration are being awarded only through a competitive bidding system and National Oil Companies (NOCs) are required to compete on an equal footing with Indian and Foreign companies to secure Petroleum Exploration Licenses (PELs).
Nine rounds of bids have so far been concluded under NELP, in which production sharing contracts for 254 exploration blocks have been signed.
The Government has taken number of measures to bring in healthy competition and public participation by the way of NELP for exploration & production of Oil & gas in the country. NELP has not only accelerated the quest for hydrocarbon exploration, but has also brought the state of the art technology and efficiency of operations /management to the country.
Government of India has signed 28 contracts for 29 discovered fields (1 PSC for Panna Mukta),28exploration blocks under Pre-NELP Exploration regime and 254 blocks under NELP regime with National Oil Companies and private (Both Indian and foreign)/ Joint Venture companies.
At present, out of 311 exploration blocks/fields awarded so far under various bidding rounds (Discovered Field, Pre-NELP & NELP), 178 blocks/ fields are operational.
The awarded 254 blocks are located in onland (111), offshore shallow water (62) and deepwater (81) areas. As a result of exploratory activities, several unexplored and poorly explored areas, in particular offshore and deepwater areas have been appraised through geophysical surveys and exploratory drilling.So far a total of 140 hydrocarbon discoveries (49 Oil and 91 Gas). Most of the gas discoveries have been made in shallow water offshore (39) and deepwater blocks (46).
NELP bidding rounds have also attracted many Private and Foreign Companies in addition to PSUs. Before the NELP, a total 35 E&P Companies (5 PSUs, 15 Private and 15 Foreign) were working in Nomination and Pre-NELP regime.
After the conclusion of nine rounds of NELP bidding, the total number of companies have increased to 117 (11 PSUs, 58 Private and 48 Foreign Companies as Operators and Non-operators/Consortium Partners). Major Private Companies were RIL, Jubilant and Essar.
The major foreign companies were British Gas, British Petroleum, Cairn Energy, ENI, Santos and BHP Billiton.
Public Sector Undertakings (PSU) IOCL, GAIL, BPCL working under MoP&NG and their subsidiaries like Bharat Petro Resources Ltd. (Subsidiary of BPCL), Prize Petroleum Company Limited (Subsidiary of HPCL), have participated in various NELP bidding rounds and have been awarded exploration blocks in various NELP bidding rounds.
In addition to central PSU, state PSU like GSPC have participated in various NELP bidding rounds and have been awarded exploration blocks.
Under NELP, blocks were awarded to Indian, private and foreign companies through International Competitive Bidding process where NOCs viz. ONGC and Oil are also competing on equal footing.
Chronology of NELP Events:
Blocks Awarded Under NELP Rounds:
The Government has taken number of measures to bring in healthy competition and public participation by the way of NELP for exploration & production of Oil & gas in the country. NELP has not only accelerated the quest for hydrocarbon exploration, but has also brought the state of the art technology and efficiency of operations /management to the country.
Basin-wise distribution of PEL areas under operation (Pre-NELP & NELP blocks) (as on 01.04.2015)
