Concept: Hydrocarbon Exploration and Licensing Policy (HELP)
Topic: Indian Economy
Category: Changes in industrial policy and their effects on industrial growth
Related News: Hindu, Mar 11
CNA mentions: 2(Mar 11)
Hydrocarbon Exploration and Licensing Policy (HELP)
The Hydrocarbon Exploration and Licensing Policy or HELP, approved by the cabinet in march 2016 is aimed at increasing the transparency and decreasing the administrative discretion in granting hydrocarbon licenses. The license will permit contractors to explore conventional and unconventional oil and gas resources that comprise of shale gas/oil, CBM, gas hydrates and tight gas under one single license.
The Open Acreage Policy concept will facilitate exploration and production (E&P) companies to select blocks from the designated areas. The revenue sharing model replaced the previous fiscal system of production division based on investment multiple, and payment based on cost recovery or production. This easy to administer model is in tandem with the government’s ‘east of doing business’ policy.