DGH releases the draft report “Policy Issues for Streamlining the  Working of Production Sharing Contracts”

The Directorate General of Hydrocarbons in its draft report titled “Policy Issues for Streamlining the Working of Production Sharing Contracts”, has proposed a policy prescription on 11 long-standing issues related to contracts under the New Exploration Licensing Policy (NELP) and pre-NELP regimes. These issues include pricing
freedom for gas produced in the Northeast, licence to explore through a field’s life, extending contracts to compensate for time lost in obtaining clearances, income tax sops for some fields, and permitting partners to replace ONGC as the licensee in fields where development is stuck as the state firm alone has to pay cess and royalty on the
total output.