← Policy & Regulation: Sector rules & licensing (all topics)
Exploration licence regime
What it is
India's upstream licensing has moved through NELP to HELP and the Open Acreage Licensing Policy, under which companies can nominate blocks year-round rather than waiting for bid rounds. Revenue sharing replaced profit sharing to reduce disputes
Discovered Small Field rounds target already-identified reserves
Impact on industries
- Open acreage and revenue sharing were designed to attract investment by cutting administrative discretion and cost-recovery disputes
- More exploration activity directly drives demand for drilling rigs, services and equipment
- Participation has been limited relative to ambition, since India's proven prospectivity and fiscal terms compete against global alternatives
- Exploration spending responds to crude prices with a lag, so licensing reform alone does not create activity