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Government Of Assam Mines & Minerals

Petroleum Exploration Licence (PEL)

  • Petroleum Exploration Licence (PEL) :

    Petroleum Exploration Licence (PEL) is granted for a period of 7 years in inland/shallow water areas and for 8 years in deep water and frontier areas for exploration activities as per PSC provisions under New Exploration Licensing Policy (NELP). Petroleum Mining Lease (PML) is normally awarded for 20 years for producing Hydrocarbons as per The Oilfields Regulation & Development Act, 1948 and P&NG Rules, 1959. PEL/PML for offshore exploration & production operations is granted by the Union Government. In case of inland blocks, PEL/PML is granted by the concerned State Government on the basis of recommendation made by the Union Government for the awarded blocks.

    Grant of Petroleum Exploration Licence

    Application for exploration licence:

    • Any person desirous of exploring for petroleum in any part of a designated area may apply to the Minister for the grant of an exploration licence under the provisions of Petroleum (Exploration and Exploitation) Act.
    • Every application for an exploration licence shall be lodge with the Director and shall -
      (a) be in writing in the prescribed form addressed to the Minister;(b) be accompanied by the prescribed fees;
      (c) be in respect of not more than seventy blocks;
      (d) be accompanied by particulars of -
      (i) the proposals of the applicant for work and expenditure in respect of the blocks specified in the application;
      (ii) the technical qualifications of the applicant and his employees;
      (iii) the technical advice available to the applicant;
      (iv) the financial resources of the applicant;
      (v) such other matters that the applicant wishes to be considered by the Minister.
    • The blocks specified in an application for an exploration licence shall be blocks that-
      (a) constitute a single area; and
      (b) are such that each such block has a side in common with at least one other block specified in the application.
    • The Director may, and if so directed by the Minister shall, by notice in writing require the applicant to furnish within the time specified in such notice such further information in writing in connection with the application as in the opinion of the Director or the Minister is required for the proper consideration of the application and if such information shall not have been furnished within the time specified in the notice the application shall unless the Minister otherwise declares be deemed to have lapsed and become void.

    • Subject to the provisions of this Act and to any terms and conditions not inconsistent therewith that he may think fit the Minister may grant an exploration licence in respect of the whole or any part of the area applied for unless the provisions of section 15:
      Provided that an exploration licence may not be granted in respect of any block or blocks which are already the subject of an exploration licence or production licence previously granted under the provisions of this Act.

    Rights conferred by exploration licence

    • Subject to the provisions of this Act and in accordance with the terms and conditions to which such licence is subject, the holder of an exploration licence shall have the exclusive right to explore for petroleum, and to carry on such operations and execute such works as are necessary for that purpose, in the licensed area.

    Term of exploration licence

    • Unless previously cancelled or surrendered under the provisions of this Act, an exploration licence shall remain in force-

      (a) in the case of a licence granted other than by way of renewal, for a period of five years commencing on the day from which such licence has effect; and
      (b) in the case of a licence granted by way of the renewal of such a licence, for a period of three years commencing on the day after the day on which the last previous exploration licence in respect of the block or blocks specified in the exploration licence so granted ceases to have effect.