Proposal on 10-year rights for geological information, albeit to be shared with government, based on models elsewhere
Opening an entirely new business stream in the oil and gas exploration and production sector, the government plans to grant 10-year exclusivity rights for geological data mined through a speculative survey.
"A comprehensive speculative survey policy would come out by the end of this month," Petroleum Secretary Vivek Rae told Business Standard. The policy is aimed at attracting global companies for data acquisition. They would get 10-year exclusive rights for selling the data to Indian and foreign oil and gas companies. The government will also get access to the data once it is ready.
This policy, along with the national data repository (NDR), would be a precursor to a new system of a continuous bidding process for oil and gas blocks, called an Open Acreage Licensing Policy (OALP) regime. Here, companies would get the freedom to select any block on offer any time, compared to the existing New Exploration Licensing Policy (Nelp), where the government puts a particular area up for bidding.
Petroleum Minister M Veerappa Moily had, in August, given his nod to the formation of a National Data Depository on hydrocarbon assets. It would be controlled by the directorate general of hydrocarbons (DGH). Engineers India Ltd, on behalf of DGH, has already invited a tender for the NDR, on which the bid due date is this Tuesday. According to officials, four or five global companies are interested.
Under the speculative survey policy, India would follow a revenue sharing model. Currently during the roadshows for Nelp, data is sold by the government. Under the new model, an application fee would be charged, either as a fixed amount or depending on the area to be surveyed.
The new policy is based on seismic survey policies in Norway, the US and Britain. While the NDR cost is estimated to be at least Rs 50 crore, a seismic survey can be done by any interested company, on a fee, though it would have to provide this to the government, too.
DGH, the technical arm of the petroleum ministry, initiated a bidding process a few years earlier, inviting tenders from international players for a speculative survey. The process ran into legal trouble. The Central Bureau of Investigation had filed a case against V K Sibal, the then DGH, for allegedly favouring a US-based firm in carrying out a seismic exploration of oil and gas along Indian coasts.
Though companies such as Oil and Natural Gas Corporation, Oil India, Reliance Industries and Cairn India have their own data bank, measures such as a speculative survey and NDR would make it accesible for global firms, making it easier to find a viable asset.
The government is set to usher the OALP regime within two years. Till now, nine rounds of Nelp have taken place. The ministry is planning to hardsell the 10th round during PETROTECH 2014 in January, a flagship event of the Indian hydrocarbon industry, with 68 blocks identified for bidding.
Opening an entirely new business stream in the oil and gas exploration and production sector, the government plans to grant 10-year exclusivity rights for geological data mined through a speculative survey.
"A comprehensive speculative survey policy would come out by the end of this month," Petroleum Secretary Vivek Rae told Business Standard. The policy is aimed at attracting global companies for data acquisition. They would get 10-year exclusive rights for selling the data to Indian and foreign oil and gas companies. The government will also get access to the data once it is ready.
This policy, along with the national data repository (NDR), would be a precursor to a new system of a continuous bidding process for oil and gas blocks, called an Open Acreage Licensing Policy (OALP) regime. Here, companies would get the freedom to select any block on offer any time, compared to the existing New Exploration Licensing Policy (Nelp), where the government puts a particular area up for bidding.
Petroleum Minister M Veerappa Moily had, in August, given his nod to the formation of a National Data Depository on hydrocarbon assets. It would be controlled by the directorate general of hydrocarbons (DGH). Engineers India Ltd, on behalf of DGH, has already invited a tender for the NDR, on which the bid due date is this Tuesday. According to officials, four or five global companies are interested.
Under the speculative survey policy, India would follow a revenue sharing model. Currently during the roadshows for Nelp, data is sold by the government. Under the new model, an application fee would be charged, either as a fixed amount or depending on the area to be surveyed.
The new policy is based on seismic survey policies in Norway, the US and Britain. While the NDR cost is estimated to be at least Rs 50 crore, a seismic survey can be done by any interested company, on a fee, though it would have to provide this to the government, too.
DGH, the technical arm of the petroleum ministry, initiated a bidding process a few years earlier, inviting tenders from international players for a speculative survey. The process ran into legal trouble. The Central Bureau of Investigation had filed a case against V K Sibal, the then DGH, for allegedly favouring a US-based firm in carrying out a seismic exploration of oil and gas along Indian coasts.
Though companies such as Oil and Natural Gas Corporation, Oil India, Reliance Industries and Cairn India have their own data bank, measures such as a speculative survey and NDR would make it accesible for global firms, making it easier to find a viable asset.
The government is set to usher the OALP regime within two years. Till now, nine rounds of Nelp have taken place. The ministry is planning to hardsell the 10th round during PETROTECH 2014 in January, a flagship event of the Indian hydrocarbon industry, with 68 blocks identified for bidding.
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