Directorate General of Hydrocarbons (DGH)

The Directorate General of Hydrocarbons (DGH) was established in 1993 under the administrative control of Ministry of Petroleum & Natural Gas through Government of India Resolution. Objectives of DGH are to promote sound management of the oil and nat are to promote sound management of the oil and natural gas resources having a balanced regard for environment, safety, technological and economic aspects of the petroleum activity. DGH has been entrusted with several responsibilities like implementation of New Exploration Licensing Policy (NELP), matters concerning the Production Sharing Contracts for discovered fields and exploration blocks, promotion of investment in E and P Sector and monitoring of E and P activities including review of reservoir performance of producing fields. In addition, DGH is also engaged in opening up of new unexplored areas for future exploration and development of non-conventional hydrocarbon energy sources like Coal Bed Methane(CBM) as also futuristic hydrocarbon energy resources like Gas Hydrates and Oil Shales. The liberalized economic policy adopted by the Government of India (GoI) in July 1991 sought to deregulate and de-license the core sectors (including the petroleum sector) with partial disinvestments of government equity in Public Sector Undertakings along with other measures. The upstream petroleum sector was largely a monopoly of public sector companies till then and the sector was being increasingly opened up to new operating companies in the private and joint sectors. Thus a need was felt to establish an agency that could effectively supervise the activities of all these companies in the national interest. The same was elucidated by the committee headed by late Dr. A. B. Dasgupta, which had reviewed the management of the Bombay High reservoir, had recommended the creation of an autonomous conservation board to oversee and review that oilfield development programs conform to sound reservoir engineering practices in line with national interests. Subsequently, a committee was constituted in 1992 under the chairmanship of late Shri P. K. Kaul, former Cabinet Secretary, to examine the need for restructuring ONGC’s organizational structure. This committee also recommended the establishment of an independent regulatory body called the Directorate General of Hydrocarbons (DGH) for discharging the regulatory functions of leasing and licensing, safety and environment and also development, conservation and reservoir management of Hydrocarbon resources in India.. Accordingly, Directorate General of Hydrocarbons was set up through GoI resolution No. O-20013/2/92/ONG-III dated 08.04.1993 under the administrative control of the Ministry of Petroleum and Natural Gas.