Comments
The Minister for Petroleum and Natural Gas, M Veerapa Moily, has given his nod to the new policy for geo-scientific data generation for hydrocarbons.
“Under the policy, permission for conducting geo-scientific survey will be granted by way of an non-exclusive multi-client survey agreement. This policy replaces the earlier model of profit sharing after cost recovery with a one-time project fee,” the Ministry said in a statement.
The Directorate-General of Hydrocarbons (DGH) will administer this policy. The regulator will call for bids from companies interested in taking up the project. The service provider shall complete the survey within two years.
The agreement with the service provider will be valid for 12 years, wherein the service provider will be free to licence the data to prospective exploration and production companies.
The project fees will be $10,000 for two years. The survey period can be extended by a maximum of 12 months by paying 60 per cent of the project fees.
A data delivery bank guarantee of $100,000 will have to be provided by the service provider to the DGH.
According to the Ministry, the new policy has been launched in view of the requirement for generation of geo-scientific data to support exploration and production activities and to make the speculative survey model more attractive and easier to implement.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.