Oil India Wins Big in Latest OALP Rounds

State-owned Oil India has won the maximum number of licences for oil and gas exploration blocks offered under Open Acreage Licensing Policy (OALP) round-2 and round-3, Indian upstream regulator Directorate General of Hydrocarbons (DGH) said July 2.

Oil India won 12 licences while another state-owned company ONGC won eight licences. Private firm Vedanta was awarded 10 blocks, DGH said. Reliance Industries and partner BP were awarded one block.

Bidding for 14 blocks on offer in the OALP round-2 and another 18 oil and gas blocks and five coalbed methane (CBM) blocks on offer in OALP round-3 closed on May 15. Following the contract signing of 55 blocks under OALP bid round-I, the government launched OALP bid round-2 on January 7, 2019 offering 14 blocks. The third round was launched in February this year.

The OALP was launched by Indian oil and gas minister Dharmendra Pradhan in June 2017. According to India’s oil and gas ministry, the OALP adopts all features of Hydrocarbon Exploration and Licensing Policy (HELP) - reduced royalty rates, no oil cess, uniform licensing system, marketing and pricing freedom, revenue sharing model, and exploration rights on all retained area for full contract life.