India presented various investment opportunities in the upstream oil and gas sector, showing great interests in the ongoing USD 2.86 billion investments underway to double gas production and drill more than 120 exploration wells over the next 4-5 years.
A Directorate General of Hydrocarbons (DGH) delegation, led by Director General Dr. V P Joy, in his presentation focused on the new improved and enhanced oil recovery concepts, introduced earlier this month, which offers flexible terms for exploiting existing discoveries.
The USD 2 billion investment will nearly double the natural gas production from the current 33 billion cubic meters a year to 60 billion cubic meters a year by 2022. The presentation was for a bid round II under the Discovered Small Field Policy (DSF) and Open Acreage Licensing Policy (OLAP). 14 blocks under the OLAP and 25 contract areas covering 59 discovered oil and gas fields under DSF Bid Round II are being offered.
The Discovered Small Field policy is aligned to Hydrocarbon Exploration and Licensing Policy (HELP), which adopts the revenue sharing model as a step towards improving the ease of doing business in Indian Exploration and Production (E&P) sector, the Directorate General of Hydrocarbons said.
It comes with attractive fiscal terms like reduced royalty rates and no cess, a single license for all hydrocarbons, pricing, and marketing freedom, freedom to explore throughout the contract period, no signing bonus and provision for sharing of common facilities, it said.
Over 175 participants from Exploration and Production companies, service providers, investors, and businessmen attended the Singapore roadshow.