Exploration & Production

India to allow unconventional exploration under existing PSCs

Oil and gas companies in India will be permitted to explore for unconventional resources under existing production-sharing contracts.
By Staff reporter 3 August 2018 0 32008

Oil and gas companies in India will be permitted to explore for unconventional resources, including shale gas and CBM, under existing production-sharing contracts (PSCs), India’s cabinet said on Wednesday.

The policy will open up 7.2 million hectares under current PSCs and 526,900 hectares of CBM contracts to simultaneous exploration of conventional and unconventional resources.

An additional 10% rate on top of the existing ‘production-level payment’ royalty will be levied on output from new CBM discoveries.