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