The eighth phase of the Open Acreage Licensing Programme (OLAP) for international competitive bidding has been extended by the Ministry of Petroleum & Natural Gas (MoPNG) to include 10 oil and gas blocks. According to an announcement from the Directorate General of Hydrocarbons (DGH), the deadline for submitting bids is January 31. Under the Hydrocarbon Exploration & Licensing Policy, the DGH released the notice inviting offers (NIO) for the exploration and development of oil and gas blocks in India in July 2022. (HELP).
The 10 blocks are divided into two on land, four in shallow water, two in deep water, and two in ultra-deepwater. This transaction is anticipated to result in an immediate exploratory work commitment of between $600 and $700 million. The exercise is a part of the government’s initiatives to lessen the nation’s reliance on imports.
The MoPNG is once again attempting to encourage offshore exploration through a tiered system of lower royalty prices. In order to encourage early commercial production, the concessional royalty rates will be applicable if production starts within four years for on-land and shallow water blocks and five years for deep water and ultra-deep water blocks from the effective date of the contract.