Open Acreage Licensing Programme
2022 JUN 14
Economic Development > Indian Economy and issues > Energy
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.
- 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.
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