NELP-X : Oil & gas exploitation policy
Q. NELP-X round is related to- Published on 20 Nov 15a. Oil & gas exploitation policy
b. Energy conservation policy
c. North East state development plan
d. None
ANSWER: Oil & gas exploitation policy
- The government plans to launch the 10th round of auctions of oil and gas exploration blocks under the New Exploration Licensing Policy (NELP)
- NELP round X would require bidders to quote the amount of oil or gas output they were willing to offer to the government from the first day of production.
- At present, oil companies can recover costs of exploration and production before sharing profit with the government.
- The Controller and Auditor General (CAG) had criticised this system on the grounds that it encouraged companies to increase capital expenditure and delay the government’s share of profit petroleum.
