DGH is responsible for awarding exploration blocks, executing production sharing
contracts, m onitoring developed fields etc.
Petroleum Exploration Licenses (PEL) for conventional dom estic exploration &
production of crude Oil and natural gas were granted under four different regim es
over a period tim e.
1. Nom ination Basis
Till the end of 1970s, Indian E&P industry was dom inated by the two
National Oil Com panies (NOCs) ONGC and Oil
PELs were granted on nom ination basis.
2. Pre NELP
2.
28 Exploration blocks were awarded to private com panies between
1980 and prior to im plementation of NELP where ONGC and Oil have
the rights for participation in the blocks after
hydrocarbon discoveries.
In 1993, GoI offered blocks for geophysical and other surveys to
update the inform ation on hydrocarbon potential of Indias unexplored
sedim entary basins.
Once the surveys on these blocks were com pleted, they were to be
offered in subsequent rounds of exploration.
The second speculative survey round was launched in 1994
and the
third round in 1995. The third round was called as Joint Venture
Speculative Survey Round (JVSSR) with a provision of risk
participation/cost sharing by DGH up to 50 %.
2. pre nelp era
28 Exploration blocks were awarded to private com panies between 1980 and prior to
im plementation of NELP where ONGC and Oil have the rights for participation in the
blocks after
hydrocarbon discoveries. In 1993, GoI offered blocks for geophysical and other
surveys to update the inform ation on hydrocarbon potential of Indias unexplored
sedim entary basins.
Once the surveys on these blocks were com pleted, they were to be offered in
subsequent rounds of exploration. The second speculative survey round was
launched in 1994 and the
third round in 1995. The third round was called as Joint Venture Speculative Survey
Round (JVSSR) with a provision of risk participation/cost sharing by DGH up to 50
%.
3. NELP era
Under NELP NOCs, private and foreign com panies were in equal
com petition for the license of blocks
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 In this era total of 254 blocks were awarded in which 140 were
Offshore and 114 onshore

Bid evaluation criteria

Prior to bidding, two or m ore parties review technical data of the desired
block. Then they give various data including No. of wells they want to drill in
that area.
For DSF

They also have to give LOWER REVENUE POINT(LRP) and HIGHER

REVENUE POINT(HRP) after that bid is evaluated.
lower revenue point (LRP) which is less than or equal to 0.0100 m illion
USD per day
higher revenue point (HRP) equal to or m ore than 1 m illion USD per day

Bidder with the highest total num ber of Wells will be assigned 20 points and
other bidders will be assigned points on relative basis

Bidders will bid the percentage share of the revenue offered to the
governm ent at the two revenue points LRP and HRP.

The bidder with the highest net present value (NPV) of revenue share offered
to the governm ent will get 80 points.

Then both m arks are added and then rank is given to them .

Rank 1 will be awarded the license.

For calculating the NPV price, production scenarios have been provided in the
notice inviting offers (NIO)prior to deciding whether to bid on a concession.