It was introduced to boost the production of oil and natural gas and providing level playing field for both public and private players.
New Exploration Licensing Policy (NELP)[1] was conceptualised by Amit B Singh after request by the Government of India, during 1997-98 to provide an equal platform to both Public and Private sector companies in exploration and production of hydrocarbons with Directorate General of Hydrocarbons (DGH) as a nodal agency for its implementation.
At present 1.06 million km2 area is held under Petroleum Exploration Licenses in 18 basins by national oil companies viz.
New Exploration Licensing Policy (NELP) was formulated by the Government of India, during 1997-98 to provide level playing field for all the investors and providing several concessions and incentives to both Public and Private sector companies in exploration and production of hydrocarbons with Directorate General of Hydrocarbons (DGH) acting as a nodal agency for its implementation.
Also, dependence on imported petroleum continues to grow and is ultimately impacting the country’s long term growth.
Under NELP, which became effective in February 1999, the process of competitive bidding is followed wherein acreages are offered to the participating companies.
The Government of India offered the highest ever number of 70 oil & gas exploration blocks covering an area of about 1,63,535 km².
The Government of India launched the Ninth round of offers for exploration acreages, NELP IX on 15 October 2010.
[7] As of 2012, ENI is still awaiting Drilling permission from the department of space due to the block’s proximity to a rocket launch zone (in Andaman and Nicobar Islands) of Isro.
[10] Under the eighth round of New Exploration Licensing Policy (NELP-VIII), Government has offered 31 production sharing contracts on 30 June 2010.
[12] India began its journey into Oil Exploration and Production just seven years after the famous ‘Drake Well’, which heralded the beginning of the Petroleum era, which was drilled in Titus Ville, Pennsylvania, USA (1859).
The oil reserves were located in the dense jungles, swamps, damp and undulated terrain of Brahmaputra Valley, Assam in the mid-19th century.
The first well was drilled by Mr.Goodenough of Mckillop, Stewart and Co.; in Upper Assam in 1866 following a hint of oil show detected by the fleet of elephants carrying logs.