New Exploration Licensing Policy Nelp
New Exploration Licensing Policy Nelp
Licensing Policy -
NELP
Upstream Industry Development
OALP
NELP era
203 + 36 Blocks
Nomination era
PSC Regime
Pre Independence
era
1886 - 1946 1947 - 1990 1990 - 1996 1997 – till date Future
PSC Regime – Pre NELP
80
72 Need for better Fiscal and
70
Contractual terms
60
50 45 46
45
40 34
28
30
20 18
13 12
10 10
10 6 7 7 7
5 5 5
0
IV (1991) V (1993) VI (1993) VII (1994) VIII (1994) JV (1995)
PSC Regime - NELP
International pricing for Crude oil & market driven prices for
Natural gas
FISCAL HIGHLIGHTS - NELP
INDIA
Weak Nigeria 2006 Brazil Round 9 Strong
Norms & Indonesia 2007 USGOM
Benchmarking
INDIA
Brazil Round 9 Market-
Administered Indonesia 2007
Nigeria 2006 USGOM based
Pricing
INDIA
Diversi
Competitive Concentrated IndonesiaNigeria
2007
2006
Brazil Round 9 USGOM
-fied
Landscape
Source :PFC Energy 9
Bid Evaluation Criteria
3. Fiscal Package
1. Profit share to Government
2. Cost recovery
PSC GROWTH
60
52
50 41
40
30 25
23 23 20 20
20
10 5 6 7 7 5
5
0
IV V VI VII VIII JV NELP- NELP- NELP- NELP- NELP- NELP- NELP-
(1991) (1993) (1993) (1994) (1994) (1995) 1 2 3 4 5 6 7
(1999) (2000) (2002) (2003) (2005) (2006) (2008)
REVENUE MANAGEMENT
Cost Sharing Mechanism
Production value
Royalty
Production
Cost Petroleum
Exploration
Government’s take
Income tax
Contractor’s take
14
14
Petroleum Expenditure & Revenue Profile
Costs
Revenues
Exploration Development
& Appraisal
Abandonment &
Production Reclamation
$
5 10 20 30 40
15
Sharing of Profit Petroleum
Upto 1.5
Profit Share
PTIM 16
Income Tax Regime in Oil Industry
33.66%
17
Royalties
(10%-12.5%)
Cost Oil Limits
100%
Profit Petroleum to GOI
6000 5734
5000 in Rs Crores
4047
4152
4000
3462
3000
2453
2000
1463
1000 624
451
951
0
Upto 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008-
2000 02 03 04 05 06 07 08 09
Policy Relevance in Present Setup
21
Effective Regulatory Mechanism
• Hydrocarbon sector
Ministry of vision
Prime
Petroleum &
Minister’s
Natural Gas • Role for different sectors
Office
in energy fuel mix
• Managing resource base Planning Com
• Bringing accountability
1950s-93
• Managing licensing
• Mandate for data •Investing capital and
repository NATIONAL OIL
COMPANIES technology
1993+
REGULATOR OPERATOR
Public Private: Foreign:
Upstream: (Central): Public Reliance BG
Downstream: ONGC (State): Jubilant
DGH ENI
Gas Regulator OIL GSPC Videocon Cairn
22
GAIL Essar Niko
Evolutionary Glitches?
200
181
180 165
160
140
120
100
76
80 69 70
55 52 57
60 48 45 52
44 44 41
32 34
40 24 25 23 27 23 24 20 20 20
20
0
NELP-I (1999) NELP-II (2000) NELP-III NELP-IV NELP-V NELP-VI NELP-VII NELP-VIII NELP-IX
(2002) (2003) (2005) (2006) (2008) (2009) (2010)
Evolutionary Glitches?