Govt receives 13 bids for oil & gas blocks in latest licensing round
OIL & GAS

Govt receives 13 bids for oil & gas blocks in latest licensing round

According to a notification by the Directorate General of Hydrocarbons (DGH), the government has received a total of 13 bids for 10 oil and gas blocks in the latest exploration licensing round. This includes three bids from the private sector. The bidding process, overseen by the DGH, had a submission deadline that was extended multiple times over the course of a year.

Among the bidders, the state-run Oil and Natural Gas Corp (ONGC) has placed bids for nine blocks. Other companies such as Oil India, Vedanta, Sun Petrochemicals, and the joint venture of Reliance Industries and BP have each bid for one block. Out of the 10 blocks, seven have received only one bid, while the remaining three have received two bids each.

While ONGC is expected to secure six blocks without competition, it will face competition from Vedanta, Sun Petrochemicals, and Oil India for one block each. The joint venture between Reliance Industries and BP faces no competition for the block it has bid for in the KG Basin.

This exploration licensing round, known as the eighth under the Open Acreage Licensing Policy (OALP), was launched on July 7 last year. The bid acceptance for this round concluded on July 5 this year after several deadline extensions.

Since the launch of OALP five years ago, state-run companies have dominated all the bidding rounds, except the first one where Vedanta won most of the blocks on offer. Foreign major companies have shown little interest in participating in Indian exploration licensing rounds.

India's domestic crude oil production has experienced a 22 per cent decline over the past decade, coupled with increasing local consumption. As a result, India's reliance on foreign oil has reached 88 per cent of its domestic needs. To address this, India needs to intensify exploration efforts and slow down the decline in production from its aging oil fields.

ExxonMobil, which has expressed interest in India's upstream sector, has called for investor-friendly policies that provide protection against expropriation and ensure certainty of returns on investment. The imposition of a windfall tax on domestic crude production last year has also dampened investor sentiment, according to industry executives.

In the latest exploration licensing round, the bid submission deadline was extended several times to accommodate potential bidders. The government aimed to provide investors with more time to evaluate the opportunities and place their bids. Additionally, the government introduced modifications to the bidding documents for this round, allowing companies to carve out larger blocks, adjusting bid evaluation criteria, and incentivising early monetisation of discoveries.

According to a notification by the Directorate General of Hydrocarbons (DGH), the government has received a total of 13 bids for 10 oil and gas blocks in the latest exploration licensing round. This includes three bids from the private sector. The bidding process, overseen by the DGH, had a submission deadline that was extended multiple times over the course of a year.Among the bidders, the state-run Oil and Natural Gas Corp (ONGC) has placed bids for nine blocks. Other companies such as Oil India, Vedanta, Sun Petrochemicals, and the joint venture of Reliance Industries and BP have each bid for one block. Out of the 10 blocks, seven have received only one bid, while the remaining three have received two bids each.While ONGC is expected to secure six blocks without competition, it will face competition from Vedanta, Sun Petrochemicals, and Oil India for one block each. The joint venture between Reliance Industries and BP faces no competition for the block it has bid for in the KG Basin.This exploration licensing round, known as the eighth under the Open Acreage Licensing Policy (OALP), was launched on July 7 last year. The bid acceptance for this round concluded on July 5 this year after several deadline extensions.Since the launch of OALP five years ago, state-run companies have dominated all the bidding rounds, except the first one where Vedanta won most of the blocks on offer. Foreign major companies have shown little interest in participating in Indian exploration licensing rounds.India's domestic crude oil production has experienced a 22 per cent decline over the past decade, coupled with increasing local consumption. As a result, India's reliance on foreign oil has reached 88 per cent of its domestic needs. To address this, India needs to intensify exploration efforts and slow down the decline in production from its aging oil fields.ExxonMobil, which has expressed interest in India's upstream sector, has called for investor-friendly policies that provide protection against expropriation and ensure certainty of returns on investment. The imposition of a windfall tax on domestic crude production last year has also dampened investor sentiment, according to industry executives.In the latest exploration licensing round, the bid submission deadline was extended several times to accommodate potential bidders. The government aimed to provide investors with more time to evaluate the opportunities and place their bids. Additionally, the government introduced modifications to the bidding documents for this round, allowing companies to carve out larger blocks, adjusting bid evaluation criteria, and incentivising early monetisation of discoveries.

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Next Story
Infrastructure Urban

Emerging Trends in Infrastructure and Transport 2025: KPMG

KPMG’s latest report, The Great Reset: Emerging Trends in Infrastructure and Transport 2025 edition, sheds light on the profound changes transforming the global infrastructure landscape. As industries adapt to the challenges posed by climate change, economic pressures, and technological advancements, the report identifies key trends and provides actionable insights for leaders in infrastructure and transport sectors. “In today’s interconnected world, the lack of standardized supply chain practices is not just an operational challenge—it’s an environmental and economic one. We’..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?