DGH simplifies procedural requirements for monetisation of oil and gas discoveries

The Directorate General of Hydrocarbons (DGH) has allowed companies to monetise oil and gas discoveries without undergoing the time-consuming procedure of government approvals for field development plans and other bureaucratic processes. According to the DGH, there are no restrictions on monetisation of discoveries at an early stage within these timelines (provided under the contracts); rather it would be in public interest that a discovery is monetised early as a step towards increasing the energy security of the country. The contracts give licensees up to eight years to undertake exploration. Following a discovery, licensees carry out appraisal, development and production sequentially. The new guidelines will help save time and bring in early revenues for the licensees as well as the government. A company will be able to start production and sale from a discovery even during the exploration phase.