Politics · India Bureau
India launches deepwater oil and gas bidding round with 50% cost support
The Indian government has unveiled a special licensing round for deepwater exploration blocks, offering to fund up to half of eligible well costs and opening bidding windows throughout the year to attract energy sector investment.
LSN India ·
India's Ministry of Petroleum and Natural Gas is rolling out a dedicated licensing initiative to accelerate offshore oil and gas exploration in the country's frontier basins. Under the special Open Acreage Licensing Policy (OALP) round, the government will shoulder up to 50 per cent of eligible exploratory well costs as part of its Rs 84,084-crore Samudra Manthan National Offshore Exploration Scheme.
The move aims to reduce barriers to entry for oil and gas explorers and investors by sharing the substantial costs and risks associated with deepwater drilling operations. The Directorate General of Hydrocarbons (DGH) confirmed that the special OALP would enable fast-track award of deepwater and ultra-deepwater exploration blocks, with acreage available for bidding on a monthly basis throughout the year.
Deepwater and ultra-deepwater exploration in India remains largely untapped, with high drilling costs and technical complexity deterring many potential bidders. By implementing monthly bidding windows and relaxed fiscal terms, the government seeks to attract a broader range of investors to these frontier areas and unlock energy resources that could boost domestic hydrocarbon production.
The DGH has indicated that comprehensive details regarding the bid round structure, timelines, and block availability will be announced shortly, marking a significant step in India's strategy to boost offshore energy exploration and reduce import dependence.