shell gas

Govt notifies policy framework for exploration, exploitation of unconventional hydrocarbons

India News
New Delhi, Dec 17
The Government issued Policy Guidelines for Exploration and Exploitation of Shale Gas and Oil by National Oil Companies under Nomination regime on October 14, 2013 to permit exploration and Exploitation of shale gas/oil by National Oil Companies (NOCs) under Nomination regime.

“To enlarge the scope of exploration and exploitation of shale gas/oil and other unconventional hydrocarbons, Government has notified the Policy Framework on 20th August, 2018 to permit exploration and exploitation of unconventional hydrocarbons such as shale oil/gas, Coal Bed Methane (CBM) etc.
in the existing acreages of Production Sharing Contracts(PSC), CBM Contracts as well as nomination fields to unlock the potential of unconventional hydrocarbons,” said Minister of Petroleum & Natural Gas Dharmendra Pradhan in a written reply to the Lok Sabha on Monday.

“The fiscal and contractual terms of the “Policy Framework for exploration and exploitation of unconventional hydrocarbons under existing PSC, CBM contracts and Nomination fields” of 2018 provide for ring-fencing of Petroleum Operations and cost recovery from new hydrocarbon discoveries in PSC blocks.

“Additional 10% rate of Profit Petroleum in case of PSCs and Production Level Payment (PLP) in case of CBM contract, over and above the existing rate of Profit Petroleum/PLP is to be shared with Government on new discoveries.

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