NEW DELHI: The 10th round of bidding for oil and gas assets under the Open Acreage Licensing Programme (OALP) will be held in early next year, said a senior official of the petroleum and natural gas ministry.
Bidding for 28 oil and gas blocks in the ninth round is set to close on September 21, with preparations for the 10th round already underway. The official noted that the Oil (Regulations and Development) Amendment Bill, aimed at reforming the oil and gas exploration sector, is expected to be passed in the upcoming winter session of Parliament. These reforms are anticipated to take effect for the 10th round.
“OALP round nine closes the day after tomorrow, and we are already in advanced stages of preparing for OALP round 10. We are hopeful that the ORD Act will pass in the winter session, which will facilitate our efforts,” said the official.
The next round is likely to include areas that were previously designated as ‘no-go’ zones, where exploration and production of oil and gas were restricted for strategic reasons.
To boost India’s oil and gas production, the government has recently opened up more than 1 million square kilometers for exploration and production operations that were formerly categorised as ‘no-go’ areas.
India is the third-largest importer of oil and gas, relying on imports for approximately 85% of its energy needs.
Efforts to enhance domestic production are critical for ensuring energy security. In FY24, India imported 233.1 million metric tons (mmt) of crude oil, compared to 232.7 mmt in FY23.
The OALP rounds are essential for India to raise domestic crude oil and natural gas production. Currently, India imports more than 85% of its crude oil needs and roughly half of its gas requirement.
In the previous eight OALP rounds, 144 exploration and production blocks comprising a total area of 242,055 sq km have been awarded.
The government introduced the OALP in 2017 to attract oil and gas firms to develop India’s upstream sector. The OALP guarantees marketing and pricing freedom with a revenue-sharing model, apart from offering reduced royalty rates.
Bidding for 28 oil and gas blocks in the ninth round is set to close on September 21, with preparations for the 10th round already underway. The official noted that the Oil (Regulations and Development) Amendment Bill, aimed at reforming the oil and gas exploration sector, is expected to be passed in the upcoming winter session of Parliament