HELP Hydrocarbon Exploration and Licensing Policy
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Tamil Research Institution (TRI)<br />
India's <strong>Hydrocarbon</strong> Outlook : 2015-16<br />
Pre-NELP<br />
Round,1993<br />
No signature or production bonus<br />
No royalty payment<br />
No custom duty<br />
Round,1993<br />
No signature or production bonus<br />
No royalty payment<br />
GoI or its nominee will have carried interest of 30% from the date<br />
of signing of contract, with the option to convert it into a working<br />
interest after the decision to proceed with the development <strong>and</strong><br />
production of discovered hydrocarbons has been taken.<br />
GoI or its nominee may also acquire 10% working interest in<br />
any block it chooses at the time of signing of contract, thereby<br />
sharing 10% of exploration cost<br />
International market price for oil produced.<br />
The pricing formula for associated gas would be on a cost<br />
plus basis, while for non-associated gas it would be related to<br />
the international price of fuel oil, the exact relationship being<br />
negotiable. The price payable for both associated <strong>and</strong> nonassociated<br />
gas would not exceed the price paid to the producer<br />
National Oil Companies (exclusive of cess,taxes <strong>and</strong> royalty)<br />
Profit oil shall be bid based on sliding scale tied to post tax rates<br />
of return or multiples of investment recovered<br />
No minimum expenditure commitment<br />
No ring fencing of blocks for corporate tax purposes<br />
Company will be operator for exploration <strong>and</strong> appraisal period.<br />
Time of transfer of operatorship to GoI or its nominee during<br />
development <strong>and</strong> production phase is negotiable<br />
GoI or its nominee will have carried interest of 30% from the date<br />
of signing of contract, with the option to convert it into a working<br />
interest after the decision to proceed with the development <strong>and</strong><br />
production of discovered hydrocarbons has been taken.<br />
GoI or its nominee may also acquire 10% working interest in any<br />
block it chooses at the time of signing of contract, thereby sharing<br />
10% of exploration cost<br />
International market price for oil produced.<br />
The pricing formula for gas would be on internationally accepted<br />
principles.<br />
Arrangement for marketing of the gas produced would be<br />
negotiable between the GoI <strong>and</strong> the Company<br />
Profit oil <strong>and</strong> profit gas share based on sliding scale tied to post<br />
tax rates of return or multiples of investment recovered<br />
No minimum expenditure commitment during the exploration<br />
period<br />
No ring fencing of blocks for corporate tax purposes<br />
Company will be operator for exploration <strong>and</strong> appraisal period.<br />
Time of transfer of operatorship to GoI or its nominee during<br />
development <strong>and</strong> production phase is negotiable<br />
Round,1994<br />
No signature or production bonus<br />
No royalty payment<br />
GoI or its nominee will have carried interest of 30% from the date of signing of<br />
contract, with the option to convert it into a working interest after the decision to<br />
proceed with the development <strong>and</strong> production of discovered hydrocarbons has<br />
been taken.<br />
GoI or its nominee may also acquire 10% working interest in any block it chooses<br />
at the time of signing of contract, thereby sharing 10% of exploration cost<br />
International market price for oil produced.<br />
The pricing formula for gas would be on internationally accepted principles.<br />
Arrangement for marketing of the gas produced would be negotiable between<br />
the GoI <strong>and</strong> the Company<br />
Profit oil <strong>and</strong> profit gas share based on sliding scale tied to post tax rates of<br />
return or multiples of investment recovered<br />
No minimum expenditure commitment during the exploration period<br />
No ring fencing of blocks for corporate tax purposes<br />
Company will be operator for exploration <strong>and</strong> appraisal period.<br />
Time of transfer of operatorship to GoI or its nominee during development <strong>and</strong><br />
production phase is negotiable<br />
JV <strong>Exploration</strong> Programme,1995<br />
No signature or production bonus<br />
No royalty payment/cess payment<br />
ONGC or OIL will have a participating interest of<br />
between 25% to 40% in the JV from the date of<br />
signing of contract, thereby sharing the exploration<br />
cost in proportion to their participating interest<br />
International market price for oil produced.<br />
The JV will have freedom to make arrangements<br />
for marketing the gas<br />
Sharing of Profit petroleum based on sliding scale<br />
tied to post tax rates of return or multiples of<br />
investment recovered<br />
No minimum expenditure commitment during the<br />
exploration period<br />
No ring fencing of blocks for corporate tax<br />
purposes<br />
Operatorship is negotiable<br />
Time of transfer of operatorship to ONGC/OIL<br />
during development <strong>and</strong> production phase is also<br />
negotiable<br />
www.tamilri.com<br />
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