New Delhi [India], March 20 (ANI): The latest Oil Field Amendment Bill In 2024, the regulations for developing small oil fields have been eased, making them more attractive to investors. According to the terms of the bill, the Discovered Small Field The DSF now receives multiple investor-friendly liberalized provisions designed to enhance operational efficiency and profitability.
Regarding newly found small oil fields, the legislation permits up to 100 percent involvement from foreign entities, increased exploratory freedom, and enhanced financial conditions without any cess, aligning with India’s Hydrocarbon Exploration and Licensing Policy (HESP). HELP ).
The updated policy aims to draw investments from both local and global sources for DSF, guaranteeing enhanced output and productivity within India’s petroleum industry.
The permission for involvement from international firms and joint ventures is anticipated to introduce cutting-edge technologies and knowledge from worldwide entities into DSFs.
A significant advantage of DSFs lies in the flexibility they offer for marketing and pricing strategies, enabling firms to determine their own price points and trade their products without restrictions within the marketplace. It is anticipated that this shift will foster a more dynamic and lucrative environment for the oil and gas sector in India.
Moreover, the elimination of the immediate signing bonus reduces early financial hurdles for investors, facilitating easier participation from newcomers.
A key policy modification essential for DSF involves allowing uninterrupted exploration during the entire duration of the contract.
Previously, exploration was confined within a particular timeframe, which constrained businesses from fully optimizing their resource recovery efforts. This modification allows firms to carry on with exploration endeavors, thereby boosting the likelihood of uncovering additional hydrocarbon deposits.
To alleviate financial burdens even more, the bill adjusts royalty rates accordingly. HELP Policy changes eliminate the Cess on production, lowering operational expenses and enhancing total profitability for investors.
The DSF policy has already driven significant advancements within India’s oil and gas industry. By February 2025, this initiative had facilitated the growth of several key areas, drawn massive investments, and boosted local hydrocarbon output.
Under India's DSF policy, the country’s total hydrocarbon resources amount to approximately 162 million metric tonnes of oil equivalent (MMTOE). This initiative has garnered anticipated investments totaling around $2.9 billion, highlighting robust faith from investors in this sector.
29 new players have entered the market through DSF rounds, while 56 active contracts are currently operational, driving higher production levels.
In terms of production, the cumulative oil output under the DSF policy has reached ~0.107 MMT (Million Metric Tonnes), while cumulative gas production has been recorded at ~0.214 BCM (Billion Cubic Meters) as of February 2025. These figures indicate a steady increase in production levels, positioning India as a growing player in the global energy market.
With the Oil Field Amendment Bill In 2024, the government plans to boost local energy generation, decrease reliance on foreign imports, and draw international investors into India’s petroleum industry.
It is anticipated that the policy modifications will boost production efficiency, incorporate advanced technologies, and reinforce India's energy security. (ANI)
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