**Executive Summary**
This document responds to a parliamentary question regarding the modernisation of upstream operations under the Hydrocarbon Exploration and Licensing Policy (HELP). It outlines measures taken to streamline investor approvals, expedite bidding for the Open Acreage Licensing Programme (OALP), and reverse production shortfalls to bolster India's energy security. The Oilfield (Regulation and Development) Amendment Act, 2025, has been enacted and came into effect in 2025.
**Key Points / Main Content**
* **Oilfield (Regulation and Development) Amendment Act, 2025 (ORD Act):**
* Enacted in 2025 to foster an investor-friendly environment and enhance Ease of Doing Business (EoDB).
* Petroleum and Natural Gas Rules reflect the provisions of the Amended ORD Act.
* **Joint Working Group (JWG):**
* Government constituted JWG with representatives from Exploration & Production (E&P) operators and Government.
* Assessed and addressed issues affecting EoDB in the upstream Oil and Gas sector.
* Government approved reforms including delivery point(s) within and outside the contract area, transfer of Participating Interest (PI) among existing PI holders under a contract and field handover process in DSF contracts etc.
* **Hydrocarbon Exploration and Licensing Policy (HELP) & Open Acreage Licensing Policy (OALP):**
* HELP launched in 2016; OALP started under this policy.
* 172 exploration blocks covering 3,78,652 sq. km awarded under 9 bidding rounds.
* OALP bid Round X launched, offering 25 exploration blocks covering 1,91,986.21 sq. km.
* Largest bid round in terms of acreage offered under HELP.
* **Salient Features of HELP Regime:**
* Reduced Royalty Rates.
* No Oil Cess.
* Uniform licensing system.
* Revenue Sharing Model.
* Exploration rights on all retained area for full contract life.
* Concessional Royalty Rates in case of early commercial production.
* No Revenue Share based bidding in Blocks falling in Category-II and III Basins (except in case of Wind fall gain etc.).
* Extended and phased exploration, bidding only 2D and 3D seismic and swapping of CWP with other surveys (for blocks falling in category II & III basins).
* Originator Incentive Increased to 10 marks for Category-II & Category-III Basins
* **Other Measures for increasing domestic hydrocarbon exploration and production:**
* Policy for Relaxations, Extensions and Clarifications under Production Sharing Contract (PSC) regime for early monetization of hydrocarbon discoveries, 2014.
* Discovered Small Field Policy, 2015.
* Hydrocarbon Exploration and Licensing Policy (HELP), 2016.
* Policy for Extension of PSCs, 2016 and 2017.
* Policy for early monetization of Coal Bed Methane (CBM), 2017.
* Policy to Promote/Incentivize Enhanced Recovery Methods of Oil/Gas, 2018.
* Policy Framework for exploration and exploitation of Unconventional Hydrocarbons including CBM, Shale Oil and Gas etc under Existing Contracts and Nomination Fields, 2018.
* Release of about 1 Million Sq. Km. (SKM) “No-Go” area in offshore in 2022 which were earlier blocked for exploration for decades.
* The Oilfields (Regulation and Development) Amendment Act, 2025;
**Impact Analysis**
**Key Exploration & Production (E&P) operators and Government:**
* **Impact:**
* Will benefit from streamlined investor approvals, enhanced EoDB, and incentives under HELP and OALP.
* Expected to increase domestic production of hydrocarbons, contributing to long-term energy security.
* **Action Required:**
* Stay informed about the provisions of the Amended ORD Act and the reforms approved by the government.
* Participate actively in OALP bidding rounds.
* Implement policies and incentives to enhance exploration and production activities.
**Investors:**
* **Impact:**
* Will benefit from an investor-friendly environment, reduced royalty rates, uniform licensing system, and other incentives.
* Expected to increase investment in the upstream Oil and Gas sector.
* **Action Required:**
* Assess the opportunities under the HELP and OALP regimes.
* Comply with the provisions of the Amended ORD Act.
**Indian Economy:**
* **Impact:**
* Increased domestic hydrocarbon production will reduce dependency on imports.
* Strengthening of India's long-term energy security.
* **Action Required:**
* Support and promote the policy reforms and incentives to maximize their impact.
Key Entities Referenced
Hydrocarbon Exploration and Licensing Policy (HELP): A policy launched in 2016 aimed at modernizing upstream operations in the hydrocarbon sector.
Oilfields (Regulation and Development) Amendment Act, 2025 (ORD Act): An Act enacted to create an investor-friendly environment and enhance ease of doing business in the oil and gas sector.
Petroleum and Natural Gas Rules, 2025: Rules notified to modernize upstream operations under HELP, reflecting the provisions of the amended ORD Act.
Open Acreage Licensing Programme (OALP): A program started under HELP to award exploration blocks to bidders; bidding rounds are conducted to award the exploration blocks.
Ministry of Petroleum and Natural Gas: The government ministry responsible for the petroleum and natural gas sector, answering questions about modernization efforts.
LOK SABHA
UNSTARRED QUESTION NO. 2040
TO BE ANSWERED ON 11th December, 2025
Modernisation of Upstream Operations under HELP
2040. Dr. Pradeep Kumar Panigrahy:
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) the draft of Petroleum and Natural Gas Rules, 2025 notified in July to modernise upstream
operations under the Hydrocarbon Exploration and Licensing Policy (HELP);
(b) the measures to streamline investor approvals amid a 3.1 per cent year-on-year decline in
domestic crude oil production to 595 BBL/D/1K in July, 2025 coupled with the eleven
percent increase provided in the Union Budget 2025-26 to 19, 327 crore rupees for the
Ministry;
(c) the targeted incentives and the procedural reforms being introduced to expedite the 15th
Round of the Open Acreage Licensing Programme (OALP) bidding; and
(d) the manner in which these measures are expected to reverse production shortfalls and
bolster India’s energy security?
ANSWER
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475) मं(cid:361)ी
((cid:373)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI SURESH GOPI)
(a) to (d): The Oilfield (Regulation and Development) Amendment Act, 2025 (ORD Act) was
enacted and came into effect in 2025. The Amended ORD Act aims to foster an investor-
friendly environment that enhances Ease of Doing Business (EoDB). The Petroleum and
Natural Gas Rules, accordingly reflect the provisions of the Amended ORD Act.
Government had constituted a Joint Working Group (JWG), comprising representatives from
key Exploration & Production (E&P) operators and Government, to assess and address issues
affecting the EoDB in the upstream Oil and Gas sector. Pursuant to that, Government
approved a set of reforms which inter alia include delivery point(s) within and outside the
contract area, transfer of Participating Interest (PI) among existing PI holders under a contract
and field handover process in DSF contracts etc.
Government have launched Hydrocarbon Exploration and Licensing Policy (HELP) in 2016.
Under this policy, Open Acreage Licensing Policy (OALP) was started. A total of 172
exploration blocks covering 3,78,652 Square Kilometer havebeen awarded to successful
bidders under 9 bidding rounds. Further, OALP bid Round X offering 25 explorationblocks covering 1,91,986.21 sq. km has been launched. It is the largest bid round so far in
terms of acreage offered in a single OALP bid round under the HELP regime.
The salient features of HELP regime are as under:
i. Reduced Royalty Rates,
ii. No Oil Cess,
iii. Uniform licensing system,
iv. Revenue Sharing Model,
v. Exploration rights on all retained area for full contract life,
vi. Concessional Royalty Rates in case of early commercial production,
vii. No Revenue Share based bidding in Blocks falling in Category–II and III Basins
except in case of Wind fall gain etc.
viii. Extended and phased exploration, bidding only 2D and 3D seismic and swapping of
CWP with other surveys are key additional features for blocks falling in category II
& III basins.
ix. Originator Incentive Increased to 10 marks for Category-II & Category-III Basins
The measures for increasing the domestic exploration and production of hydrocarbon
resources vis-à-vis the expansion of refining capacity and to reduce dependency on import of
oil and gas inter-alia include:
i. Policy for Relaxations, Extensions and Clarifications under Production Sharing
Contract (PSC) regime for early monetization of hydrocarbon discoveries, 2014;
ii. Discovered Small Field Policy, 2015;
iii. Hydrocarbon Exploration and Licensing Policy (HELP), 2016;
iv. Policy for Extension of PSCs, 2016 and 2017;
v. Policy for early monetization of Coal Bed Methane (CBM), 2017;
vi. Policy to Promote/Incentivize Enhanced Recovery Methods of Oil/Gas, 2018;
vii. Policy Framework for exploration and exploitation of Unconventional Hydrocarbons
including CBM, Shale Oil and Gas etc under Existing Contracts and Nomination
Fields, 2018;
viii. Release of about 1 Million Sq. Km. (SKM) “No-Go” area in offshore in 2022 which
were earlier blocked for exploration for decades.
ix. The Oilfields (Regulation and Development) Amendment Act, 2025;
The policy reforms and incentives offered under HELP regime enhance the capability of the
E&P industry to sustain and augment domestic production, thereby contributing to the
strengthening of India’s long-term energy security.
*****