Vedanta Limited has notified the Management
Committee, Directorate General of Hydrocarbons and Ministry of Petroleum and
Natural Gas of an oil discovery in the Krishna Godavari basin. Oil has been discovered
in the second exploratory well H2, located in the offshore block KG-OSN-2009/3,
The Krishna Godavari basin is a proven
petroliferous basin with commercial hydrocarbon accumulations. It is located on
the east coast of India. It includes the extensive deltaic plain formed by Rivers
Krishna and Godavari in the state of Andhra Pradesh and the 16adjoining areas
of Bay of Bengal in which these rivers discharge.
The Directorate General of Hydrocarbons (DGH), was
established in 1993 under the administrative control of Ministry of Petroleum
& Natural Gas. It is the technical arm of the ministry which overseas
upstream oil and gas exploration and production activities. The DGH acts as the
nodal agency for implementing Hydrocarbon Exploration and Licensing Policy
The functions of DGH are: a) advice Ministry of
Petroleum & Natural Gas on Exploration Strategies & Production Policies,
b) evaluate the hydrocarbon reserves discovered and estimated by the operating
companies, c) promote investment in Exploration and Production Sector, d)
monitor exploration and production activities including review of reservoir performance
of producing fields, e) manage production sharing contracts, f)open up of new
unexplored areas for future exploration and development of non-conventional
hydrocarbon energy sources.
HELP, introduced in 2016, is a contractual and
fiscal model for award of hydrocarbon acreages towards exploration and
production. It brings all hydrocarbons such as oil, gas, coal bed methane etc.
under a single licensing framework.
HELP introduced Open Acreage Licensing Policy
(OALP). Under OALP, exploration companies can select their operation blocks
without waiting for the formal bid round from the Government.