Oil Blocks to be Auctioned Under Hydrocarbon Exploration Licensing Policy (HELP)
Auction of new blocks will enhance the
drilling and production activities leading to increase in business of oilfield
service in India
India: The
government of India has planned to auction new oil fields under the new Hydrocarbon Exploration Licensing Policy
(HELP) by start of year 2017, as a part of strategy to ensure energy security
for India and to improve domestic production. HELP has replaced NELP (New
Exploration Licensing Policy), and is an innovative Policy which provides a uniform
licensing system to cover all hydrocarbons such as oil, gas, coal bed methane
etc. under a single licensing framework. It also allows
pricing and marketing freedom for all forms of hydrocarbons to be produced from
a field.
TechSci
Research depicts that the new Hydrocarbon Exploration Licensing Policy (HELP) will
have a major impact on investments into the Indian oil & gas sector for
increasing domestic production. India meets around 80% of its crude oil demand
through imports leading to huge import bills. The increase in domestic production
will help in to reduce the budget deficit. Moreover, it will also lead to increase
in investment by private sector in India’s oil & gas exploration sector.
The award of new blocks would surge ongoing Exploration & Production (E&P)
activities resulting in a major boost to India Oil Field Services market.
According to a released report of TechSci Research, “India Oilfield Services Market
Forecast & Opportunities, 2020”, the
country’s oilfield services market is projected to surpass USD7.8 billion by
2020, on account of anticipated increase in oil and gas E&P activities. Government’s decision of auctioning new
fields based on new revenue sharing model is expected to boost oil and gas
E&P activities over the next five years, which in turn would fuel growth in
the country’s oilfield services market through 2020.