The For Development, Exploration And Production Of Oil

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1. MOPNG draws out an bid called the notification of bid which has all the points of interest of the zones to be put on bided for development, exploration and production of oil.
2. Since this is an enormous venture and nobody organization has the funds to do it courageously so there will be joint sharing. That is there will be no less than 2-3 bidders in every understanding. In this bid they will introduce their eventual fate of that specific asset range. This is known as a "consortium."
3. When this bid is submitted to the administration; it inspects the bid and acknowledges one consortium for every block put on the bid.
4. When the bid is acknowledged, they go into a Production Sharing Contract (PSC) with the Govt. Now this contract mentions the share of the bidders of the consortium and all other required details. This PSC is a Book of scriptures. On the off chance that there is any debate they allude to the PSC for determination.
5. Presently they need to seek a petroleum exploration license (PEL). The license is allowed under The Oilfields (Regulation and Development) Act, 1948 and the Petroleum and Natural Gas Governs, 1959. Without this license they can 't begin any upstream exercises (exploration and production of oil) in the block apportioned to them. The MOPNG will give this license and proceeding this bidder needs to get consent from the state government additionally, i.e., from the particular state.
6. When they get the PEL they can begin the upstream
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