Ministry of Petroleum and Natural Gas Government of India
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1 Ministry of Petroleum and Natural Gas Government of India Directorate General of Hydrocarbons 15 th February, 2018 Hotel Hyatt, Ahmedabad
2 Process Flow Diagram for Open Acreage Licensing RC Contract Period 2 to 3 years 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 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) Submission of EOI Finalization of Block and Invitation to Bid through NIO Bid Submission and Evaluation Award of Contract Legend - POC Petroleum Operations Contract RC Reconnaissance Contract EoI Expression of Interest NDR National Data Repository NIO Notice Inviting Offer POC RC
3 Key OAL Cycle Timelines for Investors Timeline (Closing Dates) Key Milestones Window 1 Window 2 15 th Nov 15 th May 31 st Dec 30 th June Jan April May June July Sep Nov Dec Cut off Date for Bid Rounds Timing is critical to avail Originator s Incentive Finalization and Review of EoI Issue of Bid Document DGH to Evaluate EoIs and Issue NIOs Bid Submission Deadline ICB for the identified Blocks Bid Evaluation and Award Contract Signing Contract Signing
4 Final Map with Distribution of Blocks on Offer 4
5 Sedimentary Basin-wise Distribution of offered Blocks 55 Blocks with a total area of 59,282 Sq. Kms on offer 1 Deepwater Block 24% 11% SKM 6574 SKM SKM 65% Onland Shallow Water Deepwater Krishna Godavari: 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
6 Resource Potential across Basins MMTOE 0 2,000 4,000 6,000 8,000 10,000 Mumbai Offshore 4,852 Krishna-Godavari 7,578 Assam Shelf 4,133 Rajasthan-Barmer 1,943 Cambay Cauvery Assam-Arakan 1,672 1, Established Yet-to-Find Saurashtra 1,246 Kutch 827 Rajasthan-Jaisalmer 803 Rajasthan-Bikaner 443 Ganga-Punjab 128 Himalayan Foreland 44
7 Bidding Structure Two Part Single Stage Bidding Part II: Submission of Work Programme and Fiscal Bids. 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 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
8 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 (03 rd April, 2018, 1200 Hrs) 5. Hard Copy Submission of Bid Documents before Bid Closing Date and Time 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 Value of Participation Bond 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
9 Qualification and Bid Evaluation Criteria
10 Technical Qualification Criteria for POC # 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 consecutive years in the past 10 years Positive (Optional if Point 2 is fulfilled) **Note Experience of Reconnaissance Contract shall also be considered as Operatorship experience under relevant categories
11 Financial Qualification Criteria for POC 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 Ultra-Deep water 90 3 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 b) LD equivalent value of the CWP Any shortfall in Networth is allowed to be supported by an equivalent BG.
12 Bid Evaluation Criteria for POC Work Programme Bidders have to bid for 2D seismic, 3D seismic, Exploratory wells, core analysis (for shale plays only) Weightage 45% Originator Incentive Investor who has submitted an EOI for the block will be assigned 5 marks 5% Revenue Share Bid for Revenue Share at two levels: Lower Revenue Point (LRP) (USD 0.05 mn /day) Higher Revenue Point (HRP) (USD 7 mn / day) 50% 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
13 Government Share of Revenue (%) Revenue Share Bid Share (HRP) HRP Bid Share (LRP) LRP LRP shall be applicable for the Stabilization Period Onland (2 years) Shallow Water (3 years) DW/ UDW (5 years) Revenue Point (USD Million / Day) Contractor to bid the Government Share of revenue (%) against 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 profile) scores the highest
14 Life Cycle of a POC Phase Initial Exploration Phase Subsequent Exploration Phase Appraisal Period Field Development Plan submission Production Commencement Mining Lease (ML) Period Time 3(+1) years for Onland & Shallow Water, 3(+1, +1) years for DW, UDW and Specified Basins 3(+1) or 3(+1, +1) years as above 2 yrs-onland/3 yrs-offshore (with 6/12 months extensions) 12 months from intent submission (3/6 months extensions allowed) Development to commence within 1yr of approval of FDP/Grant of ML 3/5/7 yrs from FDP submission for Onshore/Shallow/(DW/UDW) 20 years with provision for 10 year extension Specified Basins
15 Qualification and Bid Evaluation Criteria for RC 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 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 3D quantum of work No of wells 15 7 Bidder quoting lowest price gets maximum marks for price of data Others would get marks proportionately Originator Incentive 5 NA Originator will get 5 marks Fiscal Package NA Not Applicable as no Production is allowed Total 75 25
16 OALP Facilitators NDR taroombooking EOI Portal oalp E-bidding Portal dia.gov.in/ Facilitation Desk
17 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 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 . Confirmation Receipt required during visit to the Data Room
18 Features of Data View Room Two data view rooms located in DGH, Noida Two teams 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 of blocks data Full assistance by DGH team for data viewers Bidders can take away up to 5 (Five) snapshots of their evaluation/interpret ation Maximum 4 (Four) person team can visit Data room is open on all working days from 10:00 AM to 05:00 PM
19 Flow Chart for E-Bidding Registration using PAN (Indian) and CIN or equivalent (Foreign) Formation of Consortium Fulfilment of Qualification Criteria both Financial and Technical Bid Parameter Quantum for CWP and Quote for GOI Revenue Share at LRP & HRP ** Bid Evaluation & Declaration of final result Provision to revise or change your Bid before Bid Closing date Preview and Submission of Bid Mapping of DSC is required for signing and encryption of Data submitted by Bidder ** System will calculate value of CWP vis-à-vis to consortium Networth and show error message if CWP value is greater than the Networth. Requisite BG required to submit.
20 Procurement of DSC DSC issue in India Contact franchisee 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 DSC issue outside India Download Application form from the site of any licensed CA Required Documents : Indian Embassy Certified 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 For Detailed Information please visit: Authorization letter in favor of the certificate applicant Latest colour passport size photograph Copy of Passport & Driving License Fill the application Form and make fund transfer for DSC issuing Fee The Indian Embassy-certified documents to be couriered to the respective CA. The CA issues the DSC along with e-token and sends the same to you. List of DSC Vendors
21 Flow Chart for Basic Data Purchase Login to NDR Portal Catalogue OALP Bid Round-I Data Package Price List Data Purchase Guidelines * Purchase of Data Package Select the Data from available List Data are selectable as per the choice of Bidder (minimum purchase 1000 U$D) Category B* Blocks Category A* Blocks Mention list of Data in Special Requirement Column Place the Order Data can be directly placed in briefcase and order can be placed to NDR *As per guidelines of Data Purchase
22 OAL Bid Round I Facilitation Desk : ebiddinghelp@dghindia.gov.in Directorate General of Hydrocarbons (Ministry of Petroleum & Natural Gas) Phone: , Fax: dg@dghindia.gov.in Website: dghindia.gov.in
23 List of Documents Required Sl. 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 10 Ample and sufficient power-of attorney granted to a legal representative /authorized representative of company or leader of consortium. Optional 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
24 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
25 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.
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