Naren­dra Modi

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Ahigh level del­e­ga­tion led by Min­is­ter of State (I/C) for Pe­tro­leum and Nat­u­ral Gas, Shri Dhar­men­dra Prad­han had or­ga­nized a pro­mo­tion event for In­dia’s new Hy­dro­car­bon Ex­plo­ration and Li­cens­ing Pol­icy (HELP) at CERA Week 2017 in Hous­ton, World’s en­ergy cap­i­tal on 6thMarch 2017. The aim was to en­cour­age ac­tive global par­tic­i­pa­tion in up­com­ing in­vest­ment op­por­tu­ni­ties in In­dia which has one of the world’s fast grow­ing oil and gas in­dus­try. The pro­mo­tion event was par­tic­i­pated by global en­ergy lead­ers, govern­ment dig­ni­taries, pol­icy mak­ers, in­no­va­tors and in­dus­try pro­fes­sion­als. Dur­ing the event, Shri Prad­han spoke about the trans­for­ma­tive and proac­tive pol­icy re­forms un­der­taken by the Govern­ment like Make in In­dia, Dig­i­tal In­dia, Ease of Do­ing Busi­ness, Skill In­dia, and Startup In­dia. The Min­is­ter em­pha­sized that the Govern­ment has in­tro­duced sev­eral pro­gres­sive re­forms in the In­dian Up­stream sec­tor, driven by the Prime Min­is­ter’s goal of re­duc­ing im­port de­pen­dency on oil and gas by 10% by 2022. At present, In­dia is the third largest oil con­sumer in the world thus, plac­ing an enor­mous fo­cus on its en­ergy se­cu­rity. The most im­por­tant re­form is the Hy­dro­car­bon Ex­plo­ration & Li­cens­ing Pol­icy (HELP) that opens up In­dia’ en­tire sed­i­men­tary basin for in­vest­ment from do­mes­tic and for­eign play­ers un­der a sim­pli­fied, trans­par­ent and in­vestor -friendly fis­cal and ad­min­is­tra­tive regime. The new pol­icy aims to pro­vide In­vestors a ready ac­cess to huge amount of seis­mic data avail­able in Na­tional Data Repos­i­tory (NDR), flex­i­bil­ity to carve out ex­plo­ration acreages through an open acreage li­cens­ing process and in­creased oper­a­tional au­ton­omy through a new rev­enue shar­ing model. The Na­tional Data Repos­i­tory (NDR) man­i­fested through an open acreage li­cens­ing (OAL) process will be a key fa­cil­i­ta­tor by pro­vid­ing seam­less ac­cess to In­dia’s en­tire E&P data process through a dig­i­tal medium to all in­vestors with the ob­jec­tive of har­ness­ing the po­ten­tial of In­dia’s large basi­nal area. The key fea­tures of HELP are: • Sin­gle, uni­form li­cense for ex­trac­tion and ex­plo­ration for all types of hy­dro­car­bon prospects • Open acreage li­cens­ing (OAL) which will per­mit in­vestors to carve out in­ter­ested blocks and sub­mit Ex­pres­sion of In­ter­est (EoI), which will be sub­se­quently given through bi-an­nual bid rounds • Sim­ple and easy to ad­min­is­ter Rev­enue Shar­ing Model • Full mar­ket­ing free­dom and free pric­ing for crude oil and nat­u­ral gas • Ex­plo­ration al­lowed dur­ing en­tire con­tract pe­riod • Zero roy­alty rates for deep wa­ter & ul­tra-deep wa­ter blocks for first 7 years • Equal weigh­tage to work pro­gram

and fis­cal share • No oil cess • Cus­tom duty ex­emp­tion So far, In­dia’s oil and gas sec­tor has gen­er­ated an in­vest­ment of 40 bil­lion USD from com­pa­nies like BP, Hardy Ex­plo­ration, Niko Re­sources, Re­liance, Cairn, ENI, Joshi Tech­nolo­gies etc. with around 236 oil and gas dis­cov­er­ies, some of which have come on pro­duc­tion and ac­count for 30% of the coun­try’s crude oil pro­duc­tion and 25% of the coun­try’s gas pro­duc­tion. Shri Prad­han also spoke about the suc­cess of re­cently con­cluded Dis­cov­ered Small Fields Bid Round 2016 in a pe­riod of crude oil price volatil­ity. The bid round re­ceived a to­tal of 134 bids from 47 com­pa­nies for 34 con­tract ar­eas and fi­nally, the Govern­ment has ap­proved the award of 31 con­tracts ar­eas. Shri Atanu Chakraborty, Di­rec­tor Gen­eral, DGH also gave a de­tailed pre­sen­ta­tion on evo­lu­tion of ex­plo­ration and pro­duc­tion in­dus­try in In­dia, at­trac­tive fea­tures of the HELP Pol­icy, Na­tional Data Repos­i­tory (NDR), Open Acreage Li­cens­ing (OAL), fis­cal & tax in­cen­tives and prob­a­ble bid pa­ram­e­ters. The Min­is­ter had ear­lier at­tended a break­fast meet­ing with In­dian Sci­en­tists and CEOs. He also in­ter­acted with H.E. Mr. Khalid Al Falih, Min­is­ter of En­ergy from Saudi Ara­bia to dis­cuss bi­lat­eral part­ner­ships in the en­ergy do­main. Also, he dis­cussed global en­ergy as­sess­ment trends with IEA Ex­ec­u­tive Di­rec­tor Mr. Fatih Birol. A meet­ing was also con­ducted by Mr Ed Monser, Pres­i­dent Emer­son on be­half of USIBC that wit­nessed par­tic­i­pa­tion from del­e­gates of over 30 com­pa­nies. The dis­cus­sions re­volved around USA-In­dia bi­lat­eral re­la­tions. The role of Big Data and An­a­lyt­ics in the oil and gas sec­tor and fu­ture col­lab­o­ra­tions with com­pa­nies in Hous­ton was also dis­cussed in de­tail. The High Level Del­e­ga­tion vis­ited Lyon­dell Basell Re­fin­ery and Petro­chem­i­cals cen­ter near Hous­ton to un­der­stand global good prac­tices.

Cabi­net ap­proves sign­ing of the De­fin­i­tive Agree­ment on Oil Stor­age and Man­age­ment be­tween In­dian Strate­gic Pe­tro­leum Re­serve Ltd (ISPRL) and Abu Dhabi Na­tional Oil Com­pany (ADNOC) of UAE

The Union Cabi­net chaired by the Prime Min­is­ter Shri Naren­dra Modi has given its ex-post facto ap­proval for sign­ing of the De­fin­i­tive Agree­ment on Oil Stor­age and Man­age­ment be­tween In­dian Strate­gic Pe­tro­leum Re­serve Ltd (ISPRL) and Abu Dhabi Na­tional Oil Com­pany (ADNOC) of UAE. Ac­cord­ing to the Agree­ment, the

ADNOC will fill up 0.81 MMT or 5,860,000 mil­lion bar­rels of crude oil at ISPRL stor­age fa­cil­ity at Man­ga­lore, Kar­nataka. Out of the crude stored, some part will be used for com­mer­cial pur­pose of ADNOC, while a ma­jor part will be purely for strate­gic pur­poses. The sign­ing of the Agree­ment will aug­ment In­dia's en­ergy se­cu­rity. In­dia and UAE are strate­gic part­ners. The in­vest­ment by ADNOC is a ma­jor in­vest­ment from UAE un­der the High Level Task Force on In­vest­ment (HLTFI) and the first in­vest­ment by UAE in In­dia in the en­ergy sec­tor.

Visit of Pe­tro­leum Min­is­ter to USA

Shri Prad­han to de­liver key­note speech at MIT En­ergy Con­fer­ence on “Bal­ance of Power – Chang­ing En­ergy Par­a­digm” in Bos­ton Min­is­ter to par­tic­i­pate in an­nual CERA Week; To have b/l meet­ings with vis­it­ing Pe­tro­leum Min­is­ters To show­case In­dia’s Hy­dro­car­bon sec­tor and pol­icy re­forms at the World’s largest Hy­dro­car­bon Con­fer­ence (CERA Week) Min­is­ter of State (I/C) for Pe­tro­leum and Nat­u­ral Gas, Shri Dhar­men­dra Prad­han will be vis­it­ing Bos­ton and Hous­ton, USA from 3-7 March 2017 along with a del­e­ga­tion com­pris­ing CEOs of Pub­lic Sec­tor Oil and Gas com­pa­nies. Dur­ing his visit to Bos­ton from 3-4 March, Shri Prad­han will de­liver a key­note speech at the Mas­sachusetts In­sti­tute of Tech­nol­ogy (MIT) En­ergy Con­fer­ence on the theme Bal­ance of Power-the Chang­ing En­ergy Par­a­digm. He will ad­dress to stu­dents at Har­vard Kennedy School on the sub­ject In­dia’s Pe­tro­leum and Nat­u­ral Gas Pol­icy. At Fletcher En­ergy and En­vi­ron­ment Club of Tufts Univer­sity, Shri Prad­han will in­ter­act with stu­dents on Chal­lenges in Pe­tro­leum and Nat­u­ral Gas sec­tor in the con­text of Paris Agree­ment and In­dia's com­mit­ment on cli­mate change. He will also be meet­ing the Mayor of City of Bos­ton and in­ter­act with In­dian com­mu­nity. The Min­is­ter will also par­tic­i­pate in the an­nual CERA Week – In­ter­na­tional Con­fer­ence on Oil and Gas from 5-7 March. At the Con­fer­ence he will be speak­ing at the Min­is­te­rial Ple­nary and in sev­eral other plat­forms. Shri Prad­han is sched­uled to have sev­eral bi­lat­eral meet­ing with vis­it­ing Pe­tro­leum Min­is­ters, in­clud­ing from Canada, UAE, Is­rael, USA, Nigeria, Saudi Ara­bia, Rus­sia and also Sec­re­tary Gen­eral of In­ter­na­tional En­ergy Agency (IEA). He will also be meet­ing and ex­chang­ing views with renowned ex­perts from hy­dro­car­bon sec­tor, in­clud­ing Dr Daniel Yer­gin and Mr Bob Dud­ley, Group Chief Ex­ec­u­tive of BP. Dur­ing his stay in Hous­ton he will in­ter­act with In­dian ori­gin sci­en­tists and CEOs work­ing in the oil and gas sec­tor and In­dian com­mu­nity mem­bers. Pe­tro­leum Min­is­ter will show­case In­dia’s hy­dro­car­bon sec­tor and the re­cent pol­icy re­forms un­der lead­er­ship of Prime Min­is­ter Naren­dra Modi at CERA Week, which is world’s largest hy­dro­car­bon con­fer­ence. He will in­ter­act with Min­is­ters, pol­icy mak­ers, tech­nol­o­gists, sci­en­tists, plan­ners and man­age­ment ex­perts, en­trepreneurs, ser­vice providers and ven­dors in or­der to at­tract in­vest­ment into In­dia’s grow­ing oil and gas sec­tor.

No Net Im­pact on LPG Con­sumers

With ef­fect from 1st March, 2017, non-sub­si­dized price of LPG cylin­der has in­creased by Rs.86. This is in line with the rise in global LPG prod­uct prices. How­ever, there will be no im­pact on the LPG con­sumers re­ceiv­ing sub­si­dized re­fills. To il­lus­trate with an ex­am­ple, the con­sumer will pay Rs.737 for a new re­fill in Delhi w.e.f. 1st March, 2017 and will re­ceive sub­sidy amount of Rs.303 in his/ her ac­count and the net price for the con­sumer will be Rs.434, which re­mains un­changed. Thus, there will be no net im­pact of the in­crease in price of non-sub­si­dized cylin­der on the LPG con­sumers re­ceiv­ing sub­si­dized re­fills.

Dhar­men­dra Prad­han, Union Min­is­ter of Pe­tro­leum and Nat­u­ral Gas

Khalid Al Falih, Min­is­ter of En­ergy, Saudi Ara­bia

Atanu Chakraborty, Di­rec­tor Gen­eral, DGH

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