Centre extends deadline for OALP Round-VIII bids, boosting investor participation in E&P sector

New Delhi: The Central government has extended the timeline for submitting bids for the Open Acreage Licensing Programme (OALP) Round-VIII, in a move aimed at attracting more participation and investment in the country’s exploration and production (E&P) sector. The extension provides additional time for interested parties to prepare and submit their bids for the 10 blocks offered for international competitive bidding.

The Ministry of Petroleum and Natural Gas (MoP&NG) launched the OALP Bid Round-VIII recently, offering 10 blocks for exploration and production activities. In order to ensure ease for bidders, the government has extended the deadline for bid submission to 12:00 hours on July 5, 2023. The extension is expected to encourage more companies to participate and enhance competition in the bidding process.

The successful award of the OALP Round-VIII Blocks will add a significant 34,364.53 square kilometers of acreage to the existing exploration area, taking the cumulative exploration acreage under OALP to 242,055 square kilometers. This expansion of acreage will provide more opportunities for oil and gas exploration and production activities in the country.

The OALP is part of the government’s efforts to attract investment and boost domestic oil and gas production. The Hydrocarbon Exploration and Licensing Policy (HELP) was introduced in 2016 to provide a transparent and investor-friendly framework for the E&P sector. Since then, seven rounds of OALP have been successfully concluded, with a total of 134 E&P blocks awarded across 19 sedimentary basins, covering an area of 207,691 square kilometers.

In recent years, the government has implemented several measures to promote investment in the sector. These include reducing “No-Go” areas in the Indian offshore by 99%, simplifying modalities for carving out open acreage blocks, and providing flexibility in drilling commitments. The government has also made modifications to the contractual framework, evaluation criteria, and bidding terms to enhance the ease of doing business and attract more investment.

Interested bidders are encouraged to study the revised terms and conditions, which are available on the Directorate General of Hydrocarbons (DGH) website and the dedicated e-bidding portal. The government has provided detailed information on the changes in the contractual framework, including larger acreage areas, flexible work programs, and enhanced stabilization periods for incentivizing early monetization of discoveries.