The Directorate General of Hydrocarbons (DGH) will be more flexible with timelines regarding appraisal, exploration and production for companies which bid for oil and gas blocks in India in the future.
RN Choubey, director-general, DGH, said the regulator is working with the ministry of petroleum and natural gas to make the timelines regarding the processes more flexible so that more ?risk capital? can be brought into the country from the tenth round of NELP. ?We will make sure there is enough flexibility where it needs to be given. When these companies have chosen India over other countries to bid for assets, my main job will be to make life easier for the exploration and production operators,? he said.
He said the single most important objective of the DGH is to attract risk capital into India?s exploration and production (E&P) sector which usually goes to regions such as Latin America and Africa.
?If that can go there, why can?t it come to India,? he pointed out. However, he said this should not be construed as the DGH becoming more lenient with non-serious players as some timelines are very important which should be contractually enforced.
?It is good to be flexible and we will work that out soon. But we will not be completely flexible as we don?t want players to squat on the blocks or destroy my reservoir for early profits,? he said.