Hydrocarbon Vision 2030 (ஹைட்ரோகார்பன் தொலைநோக்கு ஆவணம் 2030)

5.1.4.2.1 Action plan
The table below provides action plan that needs to be carried out for improving production in NER.
Table 40: Action plan for increasing production from NER
Action items
Authorities
concerned
Short term
(0-2 years)
Timeline
Medium term
(2-5 years)
Long term
(>5 years)
Enhancing exploration activities
Conversion of 2P to
1P reserves
NOCs/ Pvt
Players/MoPNG
Increased drilling efforts are
required for conversion of 2P
to 1P reserves by
incentivising service providers
or extension of services by
NOCs to third parties.
Offering quantum
of business in
cluster form to
service providers
MoPNG/MoEF
To make environment
clearance process online.
Waiver for EC and FC for
exploratory blocks.
Batch clearances for
exploratory wells.
MoPNG
Central co-ordination
committee for - Connectivity,
EC, FC, Forest diversion,
Law and Order etc.
Development of yet
to find (YTF) areas
DGH/ MoPNG
Associate with technology
partners for improved
subsurface imaging and
G&G understanding in
unexplored fronts
Bring new blocks
for E&P bidding
GOI has recently approved the marginal field policy, which will further provide opportunities to
enhance the production from isolated and unexplored areas. The union cabinet approved the
marginal field policy (MFF) on September 2, 2015, for development of hydrocarbon discoveries made
by national oil companies. These discoveries could not be monetised for many years due to various
reasons such as isolated locations, small size of reserves, high development costs, technological
constraints, fiscal regime etc.
Under the new policy, 69 oil fields which have been held by ONGC and OIL for many years, but have
not been exploited, will be opened for competitive bidding. Under this policy, exploration companies
will be able to submit bids for exploiting these oil fields. These oil fields have not been developed
earlier as they were considered as marginal fields, and hence were of lower priority. With appropriate
changes in policy, it is expected that these fields can be brought into production. To facilitate the policy,
significant changes have been made in the design of the proposed contracts.
Earlier contracts were based on the concept of profit sharing, where the government had to scrutinise
costs submitted by companies, which led to many disputes and delays. Under the new regime, the
government will not be concerned with the cost incurred and will receive a share of the gross revenue
from the sale of oil, gas etc. The second change is that the licence granted to the successful bidder,
will cover all hydrocarbons found in the field. Earlier, the licence was restricted to one item only (e.g.
oil) and separate license was required if any other hydrocarbon, for example, gas was discovered and
exploited. The new policy for these marginal fields also allows the successful bidder to sell at the
prevailing market price of gas, rather than at administered price.
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