A 10% profit petroleum payment for discoveries will be levied.
Enerdata reports that the Indian government has greenlighted a new policy framework approving the simultaneous exploration and exploitation of both conventional and unconventional hydrocarbon resources (including in particular shale oil, shale gas and coal bed methane) under their existing field contracts. Prior to this, a permit for the exploration and production of conventional resources did not apply to unconventional ones, and vice versa.
National oil companies (NOCs), which currently hold the maximum number of blocks, will be allowed to explore and produce unconventional resources under the existing contractual and fiscal terms of their exploration and lease licenses. However, a 10% profit petroleum or production level payment for new CBM discoveries will be levied.
In June 2018, the Oil Ministry amended the 1959 Petroleum and Natural Gas rules to include shale in its definition of petroleum. Prior to this change, shale was excluded and field operators were barred from exploiting it. According to the government, India currently has 100-200 tcf (roughly 2,831 bcm - 5,663 bcm) of shale gas reserves in five sedimentary basins.
This article was originally published by Enerdata.
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