Ministry of Petroleum and Natural Gas

Government of India

15th February, 2018

Directorate General of Hydrocarbons Hotel Hyatt, Ahmedabad
Process Flow Diagram for Open Acreage Licensing
Investor studies G&G
data available on NDR POC
Contract Period
 8 to 10 years:
RC Carves out blocks for Exploration
Contract Period – interested area for any  20 to 30 years:
2 to 3 years of the two contracts Development and
Production

Key Points -
• Sedimentary basins gridded
into sector of 10’ x 10’ (1’ x 1’
for existing PEL/PML)
• Party submitting EOI for an
area shall be ‘Originator’
• EOI for POC would be
preferred over RC for same
area
• EOIs can be submitted in two
cycles per annum (every 6
months)
Submission of EOI
Finalization of Block and Legend -
POC – Petroleum Operations Contract
Invitation to Bid through
RC – Reconnaissance Contract
NIO
EoI – Expression of Interest
NDR – National Data Repository
Bid Submission and
Evaluation NIO – Notice Inviting Offer
POC
Award of Contract RC
Key OAL Cycle Timelines for Investors
Timeline (Closing Dates)
Window 15th Nov 31st Dec Jan April May June
Key 1
Milestones
Window 15th May 30th June July Sep Nov Dec
2
Cut off Date for Timing is critical to avail Originator’s Incentive
Bid Rounds
Finalization and
Review of EoI
Issue of Bid DGH to Evaluate EoIs and Issue NIOs
Document
Bid Submission ICB for the identified Blocks
Deadline

Bid Evaluation and

Award

Contract
Contract Signing
Signing
Final Map with Distribution of Blocks on Offer

4
Sedimentary Basin-wise Distribution of offered Blocks
55 Blocks with a total area of 59,282 Sq. Kms on offer

1 Deepwater Block

Krishna Godavari: 01
11%
46 Onland Blocks
Rajasthan: 09
65%
6574 Krishna Godavari: 03
SKM Cambay: 11
24% Cauvery: 01
Assam-Arakan: 19
14221 SKM
Kutch: 01
Ganga: 01

38478 SKM Himalayan Foreland: 01

8 Shallow Water Blocks
Kutch: 01
Saurashtra: 02
Cauvery: 02
Onland Shallow Water Deepwater
Mumbai Offshore: 02
Krishna Godavari: 01
Resource Potential across Basins
MMTOE
0 2,000 4,000 6,000 8,000 10,000

Mumbai Offshore 4,852

Krishna-Godavari 7,578
Assam Shelf 4,133
Rajasthan-Barmer 1,943
Cambay 786 Established
Cauvery 1,672 Yet-to-Find
Assam-Arakan 1,455
Saurashtra 1,246
Kutch 827
Rajasthan-Jaisalmer 803
Rajasthan-Bikaner 443
Ganga-Punjab 128
Himalayan Foreland 44
Bidding Structure

Two Part Single Stage Bidding

Part – II:
Submission of Work Programme
and Fiscal Bids.
 Bank Guarantee in lieu of
Part – I:
Deficit Networth
Submission of Technical and
 No marks to be awarded for
Financial Qualification information
Technical Evaluation after
 Networth for each Part-I
consortium member as per
 Bids compliant after Part-I
participating interest and
are evaluated based on
technical qualification only
combined score of Bid made
for operator
at Part-II
 Submission of Bid Bond
Requisites for Bidding
1. Registration on E-bidding Portal
2. Tender Fee payment of USD 1000
/Block (Waived off for Originators)
3. Purchase of Basic Data Package as
published in NIO
4. Submission of E-Bid before Bid closing
Date (03rd April, 2018, 1200 Hrs)
5. Hard Copy Submission of Bid
Documents before Bid Closing Date
and Time
6. Submission of Bid Bond/BG in lieu of
Networth of Requisite Value as per
NIO
7. Adherence to all Terms and Conditions
as per NIO
Value of Participation Bond
Petroleum Operations Contract:
USD 150,000 /sector (USD 1,500 for 1’x1’)
with a cap of:
• USD 1 million for Onland or Shallow
water Block
• USD 2 million for Deepwater or Ultra
deep water Block
Reconnaissance Contract:
USD 30,000/sector (USD 300/ for 1’x1’) with
a cap of
• USD 0.2 mn for a Onland or Shallow
water Block
• USD 0.4 mn for Deepwater or Ultra
deep water Block
 Qualification
and
Bid Evaluation
Criteria
Technical Qualification Criteria for POC
Deep water/
Shallow
# Criteria Onland Ultra-deep
Water
Water

Minimum Operatorship Experience

(Experience of operatorship in oil and gas
1 year 1 year 1 year
exploration and / or development and / or
1 Experience is Experience is Experience is
production in the last consecutive 10 years)
Mandatory Mandatory Mandatory
*Note – CBM experience is considered for
Onland

Minimum Acreage Holding (sq. Km.) in

2 Positive (Optional if Point 3 is fulfilled)
previous 10 years

Minimum Average Annual Production

3 (MMBoe) for the previous 5 consecutive Positive (Optional if Point 2 is fulfilled)
years in the past 10 years

**Note – Experience of Reconnaissance Contract shall also be considered as Operatorship experience under relevant
categories
Financial Qualification Criteria for POC

Net-worth for one sector

Net worth for additional sectors
Type of block (10’x10’)
($ mn/ sector)
($ mn)

Onland 5 1

Shallow water 20 2

Deep water 60 2.5

Ultra-Deep water 90 3

At Bid Evaluation Stage: Originator/Bidder is required to meet the following Networth criteria
Net worth should be equal to or more than the higher of :
a) Estimated expenditure for the CWP
b) LD equivalent value of the CWP
Any shortfall in Networth is allowed to be supported by an equivalent BG.
Bid Evaluation Criteria for POC
Weightage

Work Bidders have to bid for 2D seismic, 3D seismic,

45%
Programme Exploratory wells, core analysis (for shale plays only)

Originator Investor who has submitted an EOI for the block will
5%
Incentive be assigned 5 marks

Bid for Revenue Share at two levels:

Revenue
• Lower Revenue Point (LRP) (USD 0.05 mn /day) 50%
Share
• Higher Revenue Point (HRP) (USD 7 mn / day)

Key Notes –
1. Marks distribution of Work Programme – 2D (8 marks), 3D (17 marks), Exploratory
Wells (15 marks) and Core Analysis for Shale Plays (5 marks)
2. Bidders quoting highest in the respective activity in Bid Work Programme will get
highest marks and other bidders will be proportionately evaluated
Revenue Share
Government Share of Revenue (%)
Bid Share
(HRP) HRP

LRP shall be applicable for

Bid Share LRP
(LRP) the Stabilization Period
 Onland (2 years)
 Shallow Water (3 years)
 DW/ UDW (5 years)

0.05 7
Revenue Point (USD Million / Day)

 Contractor to bid the Government Share of revenue (%) against

Lower Revenue Point (LRP) ≤ US$ 0.05 mn/day
Higher Revenue Point (HRP) ≥ US$ 7 mn/day
 Bidder with highest average NPV of the revenue share (calculated based on four
notional revenue profile) scores the highest
Life Cycle of a POC
Phase Time

3(+1) years for Onland & Shallow Water,

Initial Exploration Phase
3(+1, +1) years for DW, UDW and Specified Basins

Subsequent Exploration Phase 3(+1) or 3(+1, +1) years as above

2 yrs-Onland/3 yrs-Offshore (with 6/12 months

Appraisal Period
extensions)

12 months from intent submission (3/6 months

Field Development Plan
extensions allowed) Development to commence
submission
within 1yr of approval of FDP/Grant of ML
3/5/7 yrs from FDP submission for
Production Commencement
Onshore/Shallow/(DW/UDW)

Mining Lease (ML) Period 20 years with provision for 10 year extension

Specified Basins
Qualification and Bid Evaluation Criteria for RC
The bidder for RC or EOI submitting party must have any one of the following experience:
• 1000 LKM of 2D seismic API , or
• 300 SKM of 3D seismic API, or
• Drilling of at least 5 wells
• Others surveys like CSEM, Gravity, Magnetic, MT etc for at least 1000 sq km.
Bid Evaluation Criteria
Activity Marks for WP Marks for price of Evaluation Method
data
2D 20 8 • Bidder quoting highest quantum
gets the maximum marks for
3D 35 10 quantum of work
• Bidder quoting lowest price gets
No of wells 15 7
maximum marks for price of data
• Others would get marks
proportionately
Originator Incentive 5 NA • Originator will get 5 marks
Fiscal Package NA • Not Applicable as no Production is
allowed
Total 75 25
OALP Facilitators

NDR
https://www.ndrdgh.gov.in/NDR/
http://online.dghindia.org/oal/da EOI Portal
taroombooking http://online.dghindia.org/
oalp

E-bidding Portal
https://ebidding.dghin
dia.gov.in/
Facilitation Desk
http://online.dghindia.org/oalp/contact
Email: Facilitationoal@dghindia.gov.in
Physical Data View Room

Available for the offered Blocks Data Rooms at other locations

at DGH Office Noida to be announced.

PAN (Indian Users) / CIN

For Booking, please visit (Foreign Users) Number of the
Company is mandatory .
http://online.dghindia.org/oal/
dataroombooking

Payment to be made online as

per the number of days. After Confirmation Receipt required
payment, an automated during visit to the Data Room
confirmation receipt will be sent
to the users email.
Features of Data View Room

 Full assistance by
DGH team for data
 All the E&P data is
viewers
available on two
high end work  Bidders can take
 Two data view stations away up to 5 (Five)
rooms located in snapshots of their
 Work stations are
DGH, Noida evaluation/interpret
equipped with
ation
 Two teams can Decision Space
independently Geosciences (DSG)  Maximum 4 (Four)
work and evaluate interpretation s/w person team can
blocks on offer with full G&G visit
functionality for
 Data room is open
interpretation and
on all working days
evaluation of
from 10:00 AM to
blocks data
05:00 PM
Flow Chart for E-Bidding

Registration Fulfilment of Bid Parameter

using PAN Formation Qualification Quantum for CWP
(Indian) and CIN of Criteria both and Quote for GOI
or equivalent Consortium Financial and Revenue Share at
(Foreign) Technical LRP & HRP **

Provision to revise or
Bid Evaluation &
change your Bid Preview and
Declaration of
before Bid Closing Submission of Bid
final result
date

Mapping of DSC is required for signing and encryption of Data submitted by Bidder

** System will calculate value of CWP vis-à-vis to consortium Networth and show error
message if CWP value is greater than the Networth. Requisite BG required to submit.
Procurement of DSC
DSC issue in India
 Contact franchisee of any of the CAs (Certifying Authorities)
 Ask for DSC Class III for Signing and Encryption
 Buy as employee of a company (not in individual capacity)
 Fill form with Identity Proof and Authorization Letter From Company and Pay requisite fee

DSC issue outside India Authorization letter in favor of the certificate

 Download Application form from the site of any applicant
licensed CA
 Required Documents : Indian Embassy Certified Latest colour passport size photograph
copies of
Copy of Passport & Driving License
Any one from - Certificate of Incorporation,
 Fill the application Form and make fund transfer for
Memorandum and Articles of Association,
DSC issuing Fee
Registered Partnership Deed, Valid Business
License document  The Indian Embassy-certified documents to be
couriered to the respective CA.
 Any one from - Annual report, Income tax return,
 The CA issues the DSC along with e-token and sends
Statement of Income, Bank details of the
the same to you.
Organization

For Detailed Information please visit: http://www.cca.gov.in List of DSC Vendors

Flow Chart for Basic Data Purchase

Data Package Price List

Catalogue
Login to
Data Purchase Guidelines *
NDR Portal OALP Bid
Round-I Purchase of Data Package

Data are selectable as per

Select the Data from Category Category
the choice of Bidder
available List (minimum purchase 1000 B* Blocks A* Blocks
U$D)

Mention list of Data Data can be

in Special Place the directly placed
Requirement Order in briefcase and
Column order can be
placed to NDR

*As per guidelines of Data Purchase

OAL Bid Round – I
Facilitation Desk : ebiddinghelp@dghindia.gov.in

Directorate General of Hydrocarbons

(Ministry of Petroleum & Natural Gas)
Phone: 0120-2472000, Fax: 0120-2472049
Email: dg@dghindia.gov.in
Website: dghindia.gov.in
List of Documents Required
Mandatory Online
Sl. No. Documents to be submitted along with the Bid
submission
1 Corporate Information Mandatory

2 Additional Corporate information as per Annexure-1 of NIO Page No. 33 Optional

3 A Bid bond for each of the block bid (scan copy) Mandatory

4 Proof of payment of tender fees. Optional

5 Letter of presentation and commitment from the bidding company, and /or from parent company, wherever applicable.
Optional

6 Certificate form statutory auditor of the bidding company regarding Networth. Optional

7 Documents evidencing the legal existence of the bidding company ( including Article of Association and Memorandum and
certificate of incorporation/registration). Optional

8 Documents in support of Financial and Technical Qualification. Optional

9 Audited Annual Reports, Balance Sheets and Profit & Loss statements in English language along with the schedule of notes forming
part of balance sheet for the latest completed year Optional

10 Ample and sufficient power-of attorney granted to a legal representative /authorized representative of company or leader of
consortium. Optional

11 Consortium or association agreement, wherever applicable. Mandatory

12 Document whereby the parent company knows and endorses the bid and the contractual obligations of its affiliate or subsidiary,
wherever applicable. Optional

13 Bank Guarantee in lieu of Networth, as applicable (if opted). Mandatory

14 Proof of Purchase of Basic Data Package Mandatory

15 A Board approved financing plan supported by necessary documents. Optional

List of Specified Basins
S.no. Basin Name
1. Himalayan Foreland
2. Ganga Basin
3. Vindhayan Basin
4. Karewa Basin
5. Bengal Basin
6. Spiti – Zanksar Basin
7. Satpura – South Rewa – Damodar Basin
8. Bhima Kaladgi Basin
9. Bastar Basin
10. Chhattisgarh Basin
11. Pranhita Godavari Basin
List of DSC Certifying Authorities

1) Safescrypt
2) Institute for Development and Research in Banking Technology (IDRBT)
3) National Informatics Center (NIC)
4) (n)code solutions
5) eMudhra Ltd
6) Centre for Development of Advanced Computing, India (CDAC)
7) National Securities Depository Limited (NSDL)
8) Capricorn Identity Services Pvt Ltd.