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    India offers 21 oil, gas blocks for bidding

Summary

The government expects an immediate exploration work commitment of around $300-400mn.

by: Shardul Sharma

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India offers 21 oil, gas blocks for bidding

India has offered 21 oil and gas blocks for bidding during the Open Acreage Licensing Programme (OALP) bid round-6, the ministry of petroleum and natural gas said in a statement on August 7. The bidding will close on October 6.

In OALP bid round-6, about 35,346 km2 of exploration area has been offered, the government said. Out of the 21 blocks, 15 blocks are on land, four are in shallow waters and two are in ultradeep waters. Award of these blocks to winning bidders is expected by the end of November 2021.

This round will be based on the revamped terms approved in February 2019. The government has improved the fiscal parameters for blocks that became available starting with OALP bid round-4.  Under the revamped terms more importance has also been given to work programmes rather than the revenue shared with the government.

The government expects that this round would generate an immediate exploration work commitment of around $300-400mn. An area of 156,580 km2 has already been awarded under OALP bid rounds 1 to 5, the government added.