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Private Investment may Surge in Domestic O&G Exploration with Advent of "OLAP"

Royal Dutch Shell Plc is bullish about India's gas market and may re-enter the upstream business in the country if the government offered a stable policy and an open acreage license (OLAP) to explorers, senior company executives said.

Source:  ET

SNP Insights

With Implementation of OLAP, Bidders can bid for the desired O&G field at any time through out the year, without waiting for announcement under NELP. It may decrease time over run due to stiff clearance regime & hence cost over run can be minimized. So Private investment is most pertinent to rise northbound, at the implementation of this new ‘OLAP model’. Yet successful execution of this model, would strongly need a centralised database for hydrocarbon resources, be put in place in the form of ‘National Data Repository (NDR) ’ .

Source: SNP Infra Research