Government of India signs contracts under OALP Bid Round-I

The bid round-I of OALP was launched in January 2018 under the liberalized Hydrocarbon Exploration and Licensing Policy (HELP).

The government of India today signed the contracts of the blocks awarded under the Open Acreage Licensing Programme (OALP) Bid Round-I with the awardees at New Delhi. The event was presided by Shri Dharmendra Pradhan, Minister for Petroleum and Natural Gas & Skill Development and Entrepreneurship, along with Dr M. M. Kutty, Secretary (P&NG), Dr V. P. Joy, Director General- Directorate General of Hydrocarbons and other senior officials of the Ministry.

Initially, 110 e-bids were received for 55 blocks on offer with participation from 9 companies, singly or in the consortium. Finally, contracts have been signed for all 55 blocks with 6 companies. This will add a huge accretion of 59,282 sq.km to the exploration area. This is about 65% of the area presently under exploration in the country. This will lead to a significant increase in E&P activities in India and in long run discoveries from these fields may significantly boost domestic production.

The bid round-I of OALP was launched in January 2018 under the liberalized Hydrocarbon Exploration and Licensing Policy (HELP). It is for the first time that bidding in the E&P sector in India was for blocks that had been selected by bidders themselves with government playing a facilitator role. The OALP bid round-I has received overwhelming enthusiasm from various stakeholders of the E&P industry, with all 55 blocks on offer receiving bids and being awarded.

Shri Dharmendra Pradhan congratulated the awardees and assured them of complete support and assistance from the Government. He reiterated the relentless efforts of the government to enhance domestic hydrocarbon production by putting forth new policy initiatives and new offers so that the true potential of Indian sedimentary basins is realized. The Minister said that the Companies have committed investment of about Rs 6000 Crore for exploring under this round. He said there is huge potential in these reserves and their exploration will positively impact the Indian economy. He said that the Government is working in a transparent manner, and policies are being made, after extensive consultation with all stakeholders. Shri Pradhan said that Minimum Government-Maximum Governance is not only a slogan for us, but a guiding principle. He said that India has already become third largest energy consumer in the world and the Government is committed to providing affordable energy to its citizens, and for this purpose, several initiatives have been taken to enhance the production of hydrocarbons.

(With inputs from PIB)