The New Exploration Licensing Policy (NELP) was launched by the Government for accelerating the pace of hydrocarbon

exploration in the country. NELP provides a level playing field in which all the parties may compete on equal terms for the award of exploration acreage.

After Nelp: 1 -NIKOin2002inKGoffshoreblock

3 Discoveries were made in Cambay Basin GSPC discovered OIL & NIKO discovered natural gas

3 GSPC -jubilant -GGR consortium made world class gas discovery in KG

( KG-OSN-2001/3) offshore block in June, 2005

4 Provision of fast track arbitration

rcharge on foreign companies abolished

companies to review and analyze data. rofit share of natural gas in cash or kind for a block of 5yrs instead of such option being made every year.

commitment as against the threshold limit of US $ 1 billion earlier 6

Check on aggressive/speculative bidding Uniform seismic coverage of basins Participation of E&P companies with global experience Induction of new technology Global knowledge Better geological models Better E&P practices Better Government take 0 50 100 150 200

Blocks offered Bids received Contract signed Number Number 7

% of success increased with every NELP round NELP V had 100% success at this point after receiving 100% we decided to increase the blocks on offer and met with 95% success straightaway in NELP VI

Future:

Outof90blocksunderexplorationonlyafewoftheblocksareexploredthroughdrilling Hydrocarbonpotentialofmanyblocksyettobeassessedbydrilling LastSevenyearsofNELPopenedupnewareasforhydrocarbonoccurrence Confidencebuild-upindiscoveringmore&moreoilandgasinnewareas Veryhighchancesofdiscoveringmuchmorehydrocarbonsincountry