In Today’s News:
- OALP- a market-friendly policy.
1. OALP – a market-friendly policy
Hon’ble Petroleum and Natural Gas Minister of India Shri. Dharmendra Pradhan said at the signing of contracts for 11 oil and gas blocks offered under the OALP Bid Round-5 that Open Acreage Licensing Policy (OALP) is a market-friendly policy and it is driving self-reliance in the energy sector.
Prelims GS – Economic Development
- Open Acreage Licensing Policy comes under the ambit of the Hydrocarbon Exploration and Licensing Policy(HELP) which was launched in 2016.
- Open Acreage Licensing Policy (OALP) gives an option to a company looking for exploring hydrocarbons to select the exploration blocks on its own, without waiting for the formal bid round from the Government.
- Under Open Acreage Licensing Policy (OALP), a bidder intending to explore hydrocarbons like oil and gas, coal-bed methane, gas hydrate, etc., may apply to the Government seeking exploration of any new block (not already covered by exploration).
- With the successful roll-out of the HELP/OALP regime, based on the world-class National Data Repository (NDR), the Government has achieved massive enhancement of exploration acreage in India.
- The Hydrocarbon Exploration & Licensing Policy (HELP), which has adopted the Revenue Sharing contract model, is a giant step towards improving the ‘Ease of Doing Business’ in the Indian Exploration and Production (E&P) sector.
Click here to know more about OALP in Arthapedia.
Salient features of HELP:
- Single Uniform License for all Hydrocarbons
- Revenue Sharing Model
- Pricing & Marketing Freedom
- Low Royalty Rates (Varies from 2% in Ultra-Deep Offshore to 12.5% Onland)
- Further concession in Royalty Rates for Early Production.
- Exploration rights on all retained area for full contract life
- Easy, transparent, and swift bidding and awarding process.
- Simplified Dispute Resolution Mechanism
- Management Committee Role Revised to Reduced Number of Approvals.
Click here to know more about HELP/OALP.
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