Ministry of Petroleum and Natural Gas Government of India

Directorate General of Hydrocarbons 21st March, 2018

Hyderabad

Process Flow Diagram for Open Acreage Licensing

Investor studies G&G

data available on NDR

Carves out blocks for

interested area for any

of the two contracts

POC

Contract Period

8 to 10 years:

Exploration

20 to 30 years:

Development and

Production

RC

Contract Period

2 to 3 years

Submission of EoI

Finalization of Block and

Invitation to Bid through

NIO

Bid Submission and

Evaluation

Legend -

POC – Petroleum Operations Contract

RC – Reconnaissance Contract

EoI – Expression of Interest

NDR – National Data Repository

NIO – Notice Inviting Offer

Award of Contract

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)

POC

RC

Jan April May June

Timeline (Closing Dates) 31st Dec 15th Nov

Cut off Date for Bid Rounds

July Sep Nov Dec 30th June 15th May

Window 1

Window 2

Finalization and Review of EoI

Bid Submission Deadline

Bid Evaluation and Award

Contract Signing

Key

Milestones

DGH to Evaluate EoIs and Issue NIO

Timing is critical to avail Originator’s Incentive

ICB for the identified Blocks

Contract Signing

Issue of Bid Document

Key OAL Cycle Timelines for Investors

Final Map with Distribution of Blocks on Offer

4

55 Blocks with a total area of 59,282 Sq. Km. on offer

Sedimentary Basin-wise Distribution of offered Blocks

65%

24%

11%

Onland Shallow Water Deepwater

38478 Sq.Km. 14221 Sq.Km.

6574 Sq.Km.

46 Onland Blocks

Rajasthan: 09

Krishna Godavari: 03

Cambay: 11

Cauvery: 01

Assam-Arakan: 19

Kutch: 01

Ganga: 01

Himalayan Foreland: 01

8 Shallow Water Blocks

Kutch: 01

Saurashtra: 02

Cauvery: 02

Mumbai Offshore: 02

Krishna Godavari: 01

1 Deep Water Block

Krishna Godavari: 01

Resource Potential across Basins

MMTOE

4,852

7,578

4,133

1,943

786

1,672

1,455

1,246

827

803

443

128

44

0 2,000 4,000 6,000 8,000 10,000

Mumbai Offshore

Krishna-Godavari

Assam Shelf

Rajasthan-Barmer

Cambay

Cauvery

Assam-Arakan

Saurashtra

Kutch

Rajasthan-Jaisalmer

Rajasthan-Bikaner

Ganga-Punjab

Himalayan Foreland

Established

Yet-to-Find

Bidding Structure

Two Part Single Stage Bidding

Part – I:

Submission of Technical and

Financial Qualification information

Networth for each

consortium member as per

participating interest and

technical qualification only

for Operator

Submission of Bid Bond

Part – II:

Submission of Work Programme

and Fiscal Bids.

Bank Guarantee in lieu of

Deficit Networth

No marks to be awarded for

Technical Evaluation after

Part-I

Bids compliant after Part-I

are evaluated based on

combined score of Bid made

at Part-II

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 (only Part I)

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

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

Value of Participation/ Bid Bond

Qualification and

Bid Evaluation Criteria

# Criteria Onland Shallow

Water

Deep water/

Ultra-Deep

Water

1

Minimum Operatorship Experience

(Experience of operatorship in oil and gas

exploration and / or development and / or

production in the last consecutive 10 years)

*Note – CBM experience is considered for

Onland

1 year

Experience is

Mandatory

1 year

Experience is

Mandatory

1 year

Experience is

Mandatory

2 Minimum Acreage Holding (Sq. Km.) in

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

3

Minimum Average Annual Production

(MMBOE) for the previous 5 years in the

last consecutive 10 years

Positive (Optional if Point 2 is fulfilled)

Technical Qualification Criteria for POC

**Note – Experience of Reconnaissance Contract shall also be considered as Operatorship experience under relevant categories

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 (Committed Work Programme)

b) LD equivalent value of the CWP

Any shortfall in Networth is allowed to be supported by an equivalent BG.

Type of block Net-worth for one sector

(10’x10’) ($ mn)

Net worth for additional sectors ($ mn/ sector)

Onland 5 1

Shallow Water 20 2

Deep Water 60 2.5

Ultra-Deep Water 90 3

Financial Qualification Criteria for POC

Revenue Share

Work Programme

Bid for Revenue Share at two levels:

• Lower Revenue Point (LRP) (USD 0.05 mn /day)

• Higher Revenue Point (HRP) (USD 7 mn / day)

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

Exploratory wells, core analysis (for shale plays only)

Originator Incentive

Investor who has submitted an EoI for the block will

be assigned 5 marks

50%

45%

5%

Weightage

Bid Evaluation Criteria for POC

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

LRP

HRP

Go

vern

me

nt

Shar

e o

f R

eve

nu

e (

%)

Revenue Point (USD Million / Day)

0.05 7

Bid Revenue Share (LRP)

Bid Revenue Share (HRP)

Contractor to bid the Government Share of revenue (%) at

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 profiles) scores the highest

LRP shall be applicable for the Stabilization Period

Onland (2 years)

Shallow Water (3 years)

DW/ UDW (5 years)

Phase Time

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

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

Appraisal Period 2 years- Onland/ 3 years-Offshore (with 6/12 months extensions)

Field Development Plan (FDP) submission

12 months from submission of intent for FDP (3/6 months extensions allowed) Development to commence within 1 year of approval of FDP/Grant of ML

Production Commencement 3/5/7 years from FDP submission for Onshore/Shallow/(DW/UDW)

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

Specified Basins

Life Cycle of a POC

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, or

• 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

data

Evaluation Method

2D 20 8 • Bidder quoting highest quantum

gets the maximum marks for

quantum of work

• Bidder quoting lowest price gets

maximum marks for price of data

• Others would get marks

proportionately

3D 35 10

No. of wells 15 7

Originator Incentive 5 NA • Originator will get 5 marks

Fiscal Package NA • Not Applicable as no Production is

allowed

Total 75 25

Qualification and Bid Evaluation Criteria for RC

OALP Facilitators

Facilitation Desk

EoI Portal

http://online.dghindia.org/

oalp

http://online.dghindia.org/oalp/contact

Email: Facilitationoal@dghindia.gov.in

E-bidding Portal https://ebidding.dghin

dia.gov.in/

NDR/ Data Room Booking

https://www.ndrdgh.gov.in/NDR/

http://online.dghindia.org/oal/da

taroombooking

Physical Data View Room

Available for the offered Blocks at DGH Office Noida

Data Rooms at other locations to be announced.

For Booking, please visit

http://online.dghindia.org/oal/dataroombooking

PAN (Indian Users) / CIN (Foreign Users) Number of the Company is mandatory .

Payment to be made online as per the number of days. After payment, an automated confirmation receipt will be sent to the users email.

Confirmation Receipt required during visit to the Data Room

Features of Data View Room

Two data view rooms located in DGH, Noida

Two companies can independently work and evaluate blocks on offer

All the E&P data is available on two high end work stations

Work stations are equipped with Decision Space Geosciences (DSG) interpretation s/w with full G&G functionality for interpretation and evaluation

Full assistance by DGH team for data viewers

Bidders can take away up to 5 (Five) snapshots per project of their evaluation/ interpretation

Maximum 4 (Four) person team can visit

Data room is open on all working days from 10:00 AM to 05:00 PM

Registration using PAN

(Indian) and CIN or equivalent

(Foreign)

Fulfilment of Qualification Criteria both Financial and

Technical

Bid Parameter Quantum for CWP and Quote for GoI Revenue Share at

LRP & HRP **

Preview and Submission of Bid

Provision to revise or change your Bid

before Bid Submission deadline

** System will calculate value of CWP vis-à-vis to consortium Networth and show error

message if CWP value is greater than the Networth. In that case company can submit a

Bank Gurantee (BG) against the shortfall of Networth.

Formation of

Consortium

Bid Evaluation & Declaration of

Final result

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

Flow Chart for E-Bidding

DSC issue outside India

Download Application Form from the site of any

licensed CA

Required Documents: Indian Embassy apostalized

copies of

Any one from - Certificate of Incorporation,

Memorandum and Articles of Association,

Registered Partnership Deed, Valid Business

License document

Any one from - Annual report, Income tax return,

Statement of Income, Bank details of the

Organization

Authorization letter in favour of the certificate

applicant

Latest passport size colour photograph

Copy of Passport & Driving License

Fill the Application Form and make fund transfer for

DSC issuing Fee

Indian Embassy apostalized documents to be

couriered to the respective CA.

CA issues the DSC along with e-token and sends same

to the applicant.

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

Procurement of DSC

DSC issue in India

Contact franchise 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

Login to NDR Portal

*As per guidelines of Data Purchase

Catalogue

OALP Bid Round-I

Data Package Price List

Data Purchase Guidelines *

Purchase of Data Package

Category

A* Blocks

Category

B* Blocks

Data can be directly placed

in briefcase and order can be

placed to NDR

Data are selectable as per the choice of Bidder

(minimum purchase 1000 USD)

Select the Data from Available List

Mention list of Data in Special

Requirement Column

Place the Order

Flow Chart for Basic Data Purchase

Directorate General of Hydrocarbons (Ministry of Petroleum & Natural Gas) Phone: 0120-2472000, Fax: 0120-2472049 Email: dg@dghindia.gov.in Website: dghindia.gov.in

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

S. No. Documents to be submitted along with the Bid Mandatory Online

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 Documents Required

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.