India to Offer 21 Blocks for Oil and Gas Prospecting in New Bidding Round
New Delhi, March 30 – India is set to offer 21 blocks for oil and natural gas prospecting in the next bidding round under the Open Acreage Licensing Policy (OALP), according to the Directorate General of Hydrocarbons (DGH). The initiative, part of the ongoing Hydrocarbon Exploration and Licensing Policy (HELP), aims to boost domestic crude oil and natural gas production.OALP-XI Details and Bidding Parameters
The DGH has listed 21 blocks encompassing approximately 80,235 square kilometers, comprising 12 onshore areas, four shallow-water blocks, one deepsea block, and four ultra-deep sea blocks. The upcoming OALP-XI round, slated to begin shortly, follows the previous OALP-X round, which faced deadline extensions. The initial deadline for OALP-X was July 2025, subsequently pushed back to December 31, 2025, and finally to May 29, 2026.Bidders will compete to secure 14 blocks in Category-I sedimentary basins, prioritizing the highest revenue share and the most comprehensive work program. For Category-II and III blocks, the winning bids will be determined by the most extensive plans for seismic surveys and well drilling. Category-I basins are those with proven commercial production, Category-II have confirmed hydrocarbon accumulations but lack commercial development, and Category-III are considered geologically prospective with no commercial discoveries.
Expanding Acreage for Exploration
The OALP-X round, launched in February 2025, offered a substantial 191,986 square kilometers of acreage, including six onshore blocks, six shallow-water tracts, one deepwater block, and 12 in ultra-deepwater across 13 sedimentary basins. This represents a significant expansion of available exploration areas compared to previous rounds. A total of 3.78 lakh square kilometers has been offered in the previous nine OALP rounds. OALP-IX, the largest previous bid round, featured 28 blocks covering 1.36 lakh square kilometers.OALP Bid History and Key Players
The OALP policy, implemented in 2016, shifted the government’s approach from identifying and bidding out blocks to allowing explorers to identify areas outside existing company holdings. Key elements of the HELP policy include reduced royalty rates, concessional royalty rates for early commercial production, no oil cess, and exploration rights on all retained areas.OALP-IX, held in September 2024, attracted four bidders, including state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), alongside private sector Vedanta Ltd. Most blocks received only two bids. Notably, this marked the first time Reliance Industries Ltd-BP Plc bid together with ONGC for a block in the Gujarat offshore. ONGC secured 11 blocks independently, along with three in partnership with OIL, including the show water block in the Gujarat-Saurashtra basin, jointly bid with Reliance-BP. Vedanta won seven blocks, while OIL secured the remaining six.
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