Evolution Of Upstream Oil And Gas Policies In India
- NLR Journal
- Apr 22
- 1 min read
By Tanvi Joshi, United World School Of Law, Karnavati University, Gujarat.
Abstract
This research paper examines the evolution of upstream oil and gas policies in India, focusing on the Pre-Liberalization Era, the New Exploration Licensing Policy (NELP) from 1997 to 2016, and the Hydrocarbon Exploration and Licensing Policy (HELP) introduced in 2016. The Pre-Liberalization period (1947–1991) saw state control through the Oilfields (Regulation and Development) Act of 1948 and the establishment of the Oil and Natural Gas Commission (ONGC), marked by the Bombay High discovery but hindered by technological and investment constraints, leading to high import dependency (up to 75% by 1970). NELP aimed to reduce this dependency through competitive bidding and production-sharing contracts, achieving a production peak of 38.6 million tons of oil equivalent (Mtoe) in 2010-11, driven by discoveries like KG-D6, though inefficiencies and disputes limited its success. HELP introduced revenue-sharing contracts and the Open Acreage Licensing Policy (OALP) to enhance flexibility and attract investment, covering 144,000 square kilometers by 2023, yet production remains at 29.7 Mtoe (2022-23) due to its early stage. Comparative analysis highlights NELP’s initial output and investment ($50 billion) versus HELP’s potential for stability, suggesting a hybrid model could optimize future policies. The study underscores India’s ongoing challenge to balance energy security with global energy transitions.
Keywords: Upstream Oil and Gas, NELP, HELP, Energy Policy, Import Dependency.
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