Question

Consider the following statements:

Which of the above statements is/are correct

• A. 1 only
• B. 2 only
• C. 1 and 3 only
• D. all of these

Answer 1

The correct option is C

1 and 3 only

The Union Cabinet has approved the Hydrocarbon Exploration and Licensing Policy (HELP).

Four main facets of this policy are:

• uniform license for exploration and production of all forms of hydrocarbon,
• an open acreage policy,
• easy to administer revenue sharing model and
• marketing and pricing freedom for the crude oil and natural gas produced.

The decision will enhance domestic oil & gas production, bring substantial investment in the sector and generate sizable employment. The policy is also aimed at enhancing transparency and reducing administrative discretion.

Under Revenue Sharing the revenue will be shared between the government and OGECs from the first batch of production of the oil and gas itself.

Whereas under production sharing contract OGECs will first recover their capital and operating expenditure before sharing the profits with the government