Govt Launches 10th OALP Round Offering Largest Area for Exploration
OIL & GAS

Govt Launches 10th OALP Round Offering Largest Area for Exploration

Hardeep Singh Puri, Petroleum Minister, has launched the tenth round of the Open Acreage Licensing Policy (OALP), offering the largest area for oil and gas exploration in India to date. This initiative is part of the government's strategy to boost domestic production and reduce the country's reliance on energy imports.

In this round, 25 blocks covering an area of approximately 191,986.21 square kilometres are being made available for investment. These blocks are spread across 13 sedimentary basins and are categorised into Category-I, Category-II, and Category-III. The focus of this bidding round is primarily on offshore exploration, with 19 blocks covering 175,115 square kilometres, including 13 blocks located in deep and ultra-deepwater areas that span 133,724 square kilometres.

India introduced the Hydrocarbon Exploration and Licensing Policy (HELP) in 2016 to enhance domestic oil and natural gas production. Under HELP, the OALP mechanism allows investors to select blocks based on exploration and production data available at the National Data Repository (NDR), followed by submitting an Expression of Interest (EoI). The first OALP bidding round took place in January 2018, with 55 blocks awarded.

The contracts for the tenth OALP round are expected to be signed following reforms in the Oil (Regulations and Development) Amendment Bill. This bill, which clarifies the process for granting and extending petroleum leases, allows for international arbitration, and introduces a new dispute resolution mechanism, has been passed by the Rajya Sabha but is still awaiting clearance by the Lok Sabha. Once passed, it will attract global companies like Chevron, ExxonMobil, and TotalEnergies for exploration opportunities in India.

The previous OALP IX round, launched in January 2024, included 28 blocks over an area of 136,000 square kilometres, though no foreign companies have participated, and the results are yet to be announced.

News source: The New Indian Express

Hardeep Singh Puri, Petroleum Minister, has launched the tenth round of the Open Acreage Licensing Policy (OALP), offering the largest area for oil and gas exploration in India to date. This initiative is part of the government's strategy to boost domestic production and reduce the country's reliance on energy imports. In this round, 25 blocks covering an area of approximately 191,986.21 square kilometres are being made available for investment. These blocks are spread across 13 sedimentary basins and are categorised into Category-I, Category-II, and Category-III. The focus of this bidding round is primarily on offshore exploration, with 19 blocks covering 175,115 square kilometres, including 13 blocks located in deep and ultra-deepwater areas that span 133,724 square kilometres. India introduced the Hydrocarbon Exploration and Licensing Policy (HELP) in 2016 to enhance domestic oil and natural gas production. Under HELP, the OALP mechanism allows investors to select blocks based on exploration and production data available at the National Data Repository (NDR), followed by submitting an Expression of Interest (EoI). The first OALP bidding round took place in January 2018, with 55 blocks awarded. The contracts for the tenth OALP round are expected to be signed following reforms in the Oil (Regulations and Development) Amendment Bill. This bill, which clarifies the process for granting and extending petroleum leases, allows for international arbitration, and introduces a new dispute resolution mechanism, has been passed by the Rajya Sabha but is still awaiting clearance by the Lok Sabha. Once passed, it will attract global companies like Chevron, ExxonMobil, and TotalEnergies for exploration opportunities in India. The previous OALP IX round, launched in January 2024, included 28 blocks over an area of 136,000 square kilometres, though no foreign companies have participated, and the results are yet to be announced. News source: The New Indian Express

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