Discovered Small Field Policy
Q. Which of the following is/are true regarding the ‘Discovered Small Field’ Policy?
1) It will involve International Competitive Bidding with no mandatory domestic participation.
2) Under the policy the fields are to be explored for hydrocarbons which later can be extracted on discovery.- Published on 07 Jun 16a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
ANSWER: Only 1
- Fields have been discovered by India’s National oil companies and are now being offered under exclusive policy which is designed to be investor friendly and is based on easy to administer Revenue Sharing contract model, in tune with the Government’s policy of ‘Ease of doing business’ in India.
- It will involve International Competitive Bidding with no mandatory domestic participation.
- There is no mandatory prior technical experience required for the bidder nor is there any mandatory work program.
- There will be no cess, and minimal royalty is in line with earlier New Exploration Licensing Policy. Goods and services imported for petroleum operations will be exempted from custom duty.
- The investors will not only get an opportunity to enter in Indian upstream market but will also experience freedom for pricing and marketing of Crude and Gas on arm’s length basis.
- The Contract extension clause is generous and there will be no restriction on exploration during the contract period.
