At least seven domestic and international energy companies have placed bids in India’s ninth round of the Open Acreage Licensing Policy (OALP-9), according to the Directorate General of Hydrocarbons (DGH), the country’s upstream regulator. This latest bidding round is part of India’s ongoing efforts to attract investments in its oil and gas sector as it seeks to bolster domestic energy production and reduce reliance on imports.
The OALP-9 round features 28 oil and gas blocks, covering a vast area of approximately 136,000 square kilometers, spread across various sedimentary basins. These blocks are strategically selected for their potential to yield both conventional and unconventional hydrocarbon resources, offering opportunities for exploration and production.
Among the key bidders are prominent domestic companies such as Oil and Natural Gas Corporation (ONGC), Vedanta, and Reliance Industries, along with international energy giants like BP. The participation of these major players reflects the growing interest in India’s energy sector, spurred by the government’s policy reforms aimed at enhancing ease of doing business and offering more attractive terms to investors.
India’s Open Acreage Licensing Policy allows companies to select and bid on blocks of their choice, which has significantly streamlined the exploration process. Under this system, companies have the flexibility to propose blocks based on their analysis of data available from the National Data Repository (NDR), which contains seismic, geological, and well data for India’s sedimentary basins.
The current bidding round, OALP-9, is expected to generate significant interest due to the inclusion of both onshore and offshore blocks, with several located in under-explored areas. The blocks cover a range of geological formations that hold promise for oil, gas, and shale gas reserves, offering a variety of opportunities for exploration.
The successful auctioning of these blocks is crucial for India as it seeks to increase its domestic oil and gas output, which is vital for meeting the country’s growing energy demands. With India being one of the world’s largest importers of crude oil, increasing domestic production remains a key priority for the government.
This round also follows India’s larger strategic goal of boosting energy security and self-sufficiency. The government has set ambitious targets for reducing oil and gas imports by encouraging exploration and tapping into the nation’s untapped hydrocarbon potential. The results of OALP-9 will likely play a critical role in shaping the future of India’s oil and gas sector, as well as its energy landscape.