India has decided to once again extend the deadline for submitting bids for 28 oil and gas blocks for exploration, corresponding to the ninth round of the Open Surface Licensing Program ( OALP ), setting the new deadline for July 15.
This is the second time that the deadline has been extended in this round of bidding under the OALP ‘s Hydrocarbon Exploration and Licensing Policy . Initially, the ninth round was launched on January 3 and offers were to be submitted on February 29, later the date was extended to May 15.
Oil and gas blocks available in India
Although the government has not given an official statement, market analysts suggest that lack of investor interest could be a determining factor . They also point out that the decrease in crude oil production and a fiscal policy have limited interest in exploration to national companies.
Between April 2023 and March 2024, India’s crude oil and condensate production stood at 589,000 barrels per day, registering a decrease of 24% compared to the 2013-2014 period.
Of the 28 blocks offered , nine are terrestrial, eight are located in shallow waters and 11 in ultra-deep waters, distributed in eight sedimentary basins, covering an area of 136,596.45 km². Of these, five blocks were outlined by the General Directorate of Hydrocarbons ( DGH ), while the remaining 23 blocks arose from expressions of interest presented by companies between April 2022 and March 2023.
The response of the Government of India
The government had offered more than 1 million square kilometers of offshore area for exploration and production operations off the west coast, east coast and Andaman and Nicobar Islands, areas previously classified as “off-limits”.
It is estimated that approximately 560,000 km² will be under exploration by the end of 2024, once the ninth and tenth round blocks have been awarded. The tenth round of bidding, under the OALP, will be launched immediately after the conclusion of the ninth round and will cover more “no-go” areas for exploration.
India has so far conducted eight rounds of the OALP, awarding 144 E&P blocks comprising a total area of 242,055 km². In the eighth round, state-run ONGC won seven blocks, while a private sector consortium of India’s Reliance Industries and BP, along with state-owned Oil India and private sector Sun Petrochemicals , were awarded one block each.
The government implemented the OALP in 2017 with the objective of attracting oil and gas companies for the development of the oil sector in India. The OALP provides freedom in marketing and pricing, using a revenue sharing model and offering reduced royalty rates.
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Source: Argus Media
Photo: Shutterstock
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