Interactive Meet – Mumbaionline.dghindia.org/oalp/Content/pdf/0_Rolling_PPT_25_Oct_2017.pdf ·...
Transcript of Interactive Meet – Mumbaionline.dghindia.org/oalp/Content/pdf/0_Rolling_PPT_25_Oct_2017.pdf ·...
Interactive Meet – Mumbai
Directorate General of HydrocarbonsDirectorate General of Hydrocarbons
DGHDGHDGH
Ministry of Petroleum and Natural GasGovernment of India
26 October 201726 October 2017
Our Prime Minister
Major policy reform in the petroleum sector throughthe new Hydrocarbon Exploration Licensing Policy,there will be pricing and marketing freedom and atransparent revenue-sharing methodology. This willeliminate many layers of bureaucratic controls.
- Shri Narendra Modi, Hon’ble Prime Minister at Bloomberg Economic Summit
Our Petroleum Minister
In the next 10 years, India is offering project scope ofUSD 300 billion (in hydrocarbon sector) looking intoour future demand
- Shri Dharmendra Pradhan, Minister of Petroleum and Natural Gas & Minister of Skill Development and Entrepreneurship at India Energy Forum
India is the World’s Fastest Growing Large Economy
FDI USD 321.8 billion
(April 2000-March 2017)
India’s GDP grew 7.1% in 2016-17
7 companies in Fortune 500
(2017 list)
Unemployment rate 3.5% (30 days moving average
June 2017)
Economy Size(FY 2016-17)
USD 2.3 trillion
Population1.3 billion
Second most populous country
Forex Reserves(As on June 16 2017)
USD 381.9 billion
Source: India Soars High, KPMG Report, BSE, Reserve bank of India, World Bank, http://www.tradingeconomics.com/india/unemployment-rate
GDP Share (Advance estimates for FY 2015-16)
Services – 53.4%Industry – 31.2%
Agriculture – 15.3%
Government of India Reforms
Source: KPMG Analysis; http://www.makeinindia.com/about ; sbm.gov.in/; startupindia.gov.in/
Digital IndiaTo create a digital infrastructure as a core utility to every citizen
Start Up IndiaAims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive for growth of Start-ups
Swacch BharatTo accelerate the efforts to achieve universal sanitation coverage
Ease of Doing Business
Make in IndiaDevised to transform India
into a global design and manufacturing hub
05 03
02
04
06
01
Smart CitiesAn urban renewal and
retrofitting program with a mission to develop 100
cities all over the country
To make governance more efficient and effective
India’s Energy Basket
Source : BP Statistical Review 2017
Coal57%
Oil30%
Gas6%
Hydro4%
Renewables2%
Nuclear1%
0
100
200
300
400
500
2012 2013 2014 2015 2016
MTO
E
0.0
50.0
100.0
150.0
200.0
250.0
2012 2013 2014 2015 2016
MTO
E
24
25
26
27
28
29
30
31
2012 2013 2014 2015 2016
MTO
E
02468
1012141618
2012 2013 2014 2015 2016
MTO
E0
10
20
30
40
50
60
2012 2013 2014 2015 2016
MTO
E
0
2
4
6
8
10
2012 2013 2014 2015 2016M
TOE
0
100
200
300
400
500
600
700
800
2011 2012 2013 2014 2015 2016
Primary Energy Consumption
Source : BP Statistical Review 2017
India’s Energy Outlook
CAGR ~5%
India Oil and Gas Consumption-Production Snapshot
MTO
E
0
50
100
150
200
250
300
0
50
100
150
200
250
1986 1991 1996 2001 2006 2011 2016
Gas Production (MTOE) Gas Consumption (MTOE)
Oil Production (MT) Oil Consumption (MT)
Total Production (O+OEG) Total Consumption (O+OEG)
Source : BP Statistical Review 2017
Widening gap in demand and
supply for oil & gas
Largest consumer of oil and petroleum products in the world
3rd 35.6%Oil and Gas contribution to primary energy consumption in FY16
740 43.3MMT of proven oil reserves
TCF of proven natural gas reserves
Indian Energy Infrastructure
15000 kms. of Petroleum ProductPipeline Network
Source : PPAC
1
17000 kms ofNatural Gas Pipeline Network
2
Established City Gas Distribution Network across 16 states
3
• More than 22 MTPA of existing LNG re-gasification capacity
• 235 MTPA of refining capacity with private players share of ~40%
India has 26 sedimentary basins covering an area of 3.14 million square kilometres
India has 26 sedimentary basins covering an area of 3.14 million square kilometres
CATEGORY-I BASIN(Proven Commercial Productivity)
CATEGORY-II BASIN(Identified Prospectivity)
CATEGORY-III BASIN(Prospective Basins)
CATEGORY-IV BASIN(Potentially Prospective)
Pre-Cambrian Basement/TectonisedSediments
Sedimentary Basins of India
Assam-Arakan, Cambay, Cauvery, Krishna-Godavari Offshore, Mumbai Offshore, Rajasthan
Kutch, Mahanadi-NEC, Andaman-Nicobar
Bengal, Ganga, Himalayan Foreland, Kerala-Konkan Lakshadweep
Basar, Bhima Kaladgi, Chhatisgarh, Ciddapat, Deccan Syneclise, Karewa, Narmada, PranhitaGodavari, Satpura-S.Rewa-Damodar, SpitiZanskar
Key DiscoveriesFirst Offshore - Bombay High
Source: DGH
KG D6 Basin
Exploration and Production Regime in India
1948
State Monopoly
Nomination Era
Nomination Era
Pre-NELP PSCs
Pre-NELP PSCs NELP/CBM PSCsNELP/CBM PSCs FutureFuture
1991 1997
Beginning of de-regulation
28 producing fields and 28 exploratory blocks offered
including private players
Liberalization of E&P Sector (1997- 2009)
9 NELP and 4 CBM rounds.254 exploratory and 33 CBM blocks
through competitive bidding
Further liberalization of the sector
Discovered small field bid round 2016
Hydrocarbon Exploration & Licensing Policy
Open Acreage Licensing; NDR Launch
Revenue Sharing Model Pricing Guidelines for difficult gas
fields Proposed Production
Enhancement Contracts Policy
Discovered Small Field Policy
New Domestic Gas Pricing Guidelines
20142009
Successful completion of DSF 2016
134 e-bids received for 34 contract areas
30 contract areas awarded to 20 Companies
2015 2016-17
Highlights of PSC regime in India
Nomination,
8876, 79%
PSC, 2357, 21%
PSC regime saw participation from large no. of players
7
22
20
4
35
24
PSU
Private Players
Foreign Players
Non-operators Operators
Total License Awarded PSC Regime 16 lakhs square kmS
Total License currently under operation under PSC: ~105,000 sq. kmUS$ 40 bn investments till date and US$ 25 bn in pipeline
241 discoveries (126 Oil and 115 Gas) with Cumulative (O+OEG) production of 320 MMT
~400,000 LKM 2D and ~300,000 SKM 3D seismic data
1046 exploratory and 1018 development wells drilled so far
~25.6% of the total production is contributed by blocks under PSC regime
2P reserves in-place
Production, MMT (2016-17)
PSC [VALUE],
25.6%
Nomination
[VALUE], 74.4%
Architecture of the New E&P Policy Hydrocarbon Exploration and Licensing Policy (HELP)
Revenue Sharing Model
Full Marketing & Pricing Freedom
Fiscal Incentives
Unified License for all type of Hydrocarbons
Freedom to carve out blocks
National Data Repository
Open Acreage Licensing
Reconnaissance Contract (RC) Petroleum Operations Contract (POC)
Salient Features
Discovered Small Fields Bid Round 2016
Success story in the face of global economic slowdown and low oil prices
Discovered Small Fields Bid Round
2016
134 Total number of e-bids received 13 New entrants to E&P
industry
47Total number of companies that
participated
30Contract Areas awarded
• 23 – Onshore• 7 – Offshore
7 Existing E&P Players
20 Companies being awarded singly or
in consortium
National Data Repository• Central repository for E&P data of India
• High level of Security
• Ease of Access
• Automatic reporting
• Integrated with GIS browser
• Facilitates sharing among users and domain
Storage Viewing Retrieving Usage
Facilitation of data viewing through:
NDR PortalPhysical Data Room
Virtual Data Room
Data loaded in National Data Repository (NDR)
2D Seismic3D SeismicWells
1.7 million LKM of 2D seismic data 0.6 million SKM of 3D seismic data
13,170 well logs & 11, 900 well header data
*as on 31st July 2017
Attractive Features of HELP
Graded Royalties for
different block types
Full Freedom for Marketing and
Pricing
Single license forconventional & unconventional hydrocarbons
No carried interest by
NOCs
Equal weightage of work program
& fiscal share
Continuous exploration
permitted during contract period
Up to 100% FDI allowed
Increased exploration
phase
Revenue Sharing Model
Low regulatory burden
Transparent bidding model
Defined mechanism for
developing common reserve
Defined timelines for PI
transfer
Flexibility to use infrastructure in adjacent blocks
Other fiscal incentives
Open Acreage Licensing
Area offered under HELP through OAL
Total Sedimentary Area = 3.14 million sq. kms. Total Area offered under OAL = 2.84 million sq. kms.
• Onshore = ~1.5 million sq. kms. • Offshore = ~1.3 million sq. kms.
Zone 1 Sufficient Data Coverage
0.7 million sq. kms.
Zone 2& 3 Moderate to Sparse Data Coverage
2. 14 million sq. kms.
Open Acreage LicensingAllows bidders to carve out
their own blocks (minimum 10’ by 10’ Grid) by studying data at National Data Repository.
EoIs can be made round the year with bidding rounds at 6
monthly cycles.
Incentive mechanism for originators.
Time bound actions and activities with disincentives for non-performance
Exploration rights on all retained area for
full contract life.
Time-Bound FDP preparation and
provision for Direct FDP submission.
Environmental and Site Restoration
obligations.
Flexibility to choose between Petroleum Operations
Contract & Reconnaissance Contract
DGH India
Thank you
Directorate General of Hydrocarbons(Under Ministry of Petroleum & Natural Gas)Phone: 0120-2472000, Fax: 0120-2472049Email: [email protected] Website: dghindia.gov.in
Oil and Gas in IndiaFueling a billion dreams everyday
Directorate General of Hydrocarbons(Ministry of Petroleum & Natural Gas)
DGH India
@DGHIndia
DGH India
Thank you
Directorate General of Hydrocarbons(Under Ministry of Petroleum & Natural Gas)Phone: 0120-2472000, Fax: 0120-2472049Email: [email protected] Website: dghindia.gov.in