THE OFFSHORE AREAS MINERAL (DEVELOPMENT AND REGULATION) ACT – 2002

The Offshore Mineral (Development and Regulation) Act 2002 has been enacted to permit exploration and mining in offshore areas by the private sector. It has provision for three types of operating rights, namely reconnaissance permit, exploration licence and production lease. The reconnaissance permit will be granted for a maximum period of two years with a provision for renewal for another maximum period of two years. The exploration licence shall be granted initially for a maximum period of three years with a provision for renewal so that the total period of an exploration licence does not exceed five years. The production lease shall be granted initially for a period not exceeding 30 years with the provision for renewal for 20 years. Offshore areas would be released periodically for the grant of operating rights only after consultations with Ministries and departments having a parallel interest in the areas.

In order to safeguard defence and security interests, the provisions of the legislation shall be in addition to, and not in derogation of, any other law for the time being in force in the offshore areas.