Open Acreage Licensing Programme

Why in news?

• Recently, the Government launched the Open Acreage Licensing Programme(OALP) Bid Round-VII for International Competitive Bidding in continuation of its aggressive programme for exploration and adhering to the prescribed timelines.

About Open Acreage Licensing Programme:

• It is the most crucial part of the Hydrocarbon Exploration and Licensing Policy (HELP).
• It provides a single, uniform Licence for exploration and production of conventional as well as unconventional hydrocarbon resources.
• The freedom to carve out acreages of choice under OALP bid rounds has been given to contractors.
• The revenue-sharing model is used for offering fields.
• Producers have complete marketing and pricing freedom for crude oil and natural gas produced.

Benefits of OALP:

• It has reduced multiple licences and procedures for extracting different hydrocarbons even from the same well.
• Brought in a quantum jump in the Exploration & Production sector:
  • The successful roll-out of the HELP regime, followed by OALP Bid Rounds, has led to an increase in exploration acreages in India.

Hydrocarbon Exploration and Licensing Policy (HELP):

• HELP was brought in March 2016 replacing the erstwhile New Exploration Licensing Policy (NELP)
• It had 2 key drivers
  • The Open Acreage Licensing Programme (OALP)
  • The National Data Repository (NDR)
• Both were launched in June 2017
• It aims to accelerate the Exploration and Production (E&P) activities in India.

Features of HELP:

• Revenue Sharing Contract.
• Single, uniform licence for exploration and production of all Hydrocarbon resources.
• Choice with bidder to carve acreage.
• Marketing and pricing freedom to producer.

Add ons:

• The Government notified the further policy reforms in Exploration and Licensing Policy in February, 2019.
• The focus was shifted from 'revenue' to 'production' maximization’.
• There is continued focus on greater transparency and streamlined procedures.

PRACTICE QUESTION:

Consider the following statements regarding ‘Open Acreage Licensing Programme’ under Hydrocarbon Exploration and Licensing Policy (HELP):

1. It provides a single uniform licence for exploration and production of conventional as well as unconventional hydrocarbon resources.

2. The revenue-sharing model is used for offering fields.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

                    C

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