Open Acreage Licensing Programme

Ministry of Petroleum & Natural Gas

 

WHAT

Ministry of Petroleum and Natural Gas signs Contracts for 7 Blocks Awarded under Open Acreage Licensing Programme (OALP) Bid.

 

OPEN ACREAGE LICENSING PROGRAMME

• The Open Acreage Licensing Programme (OALP) along with the National Data Repository (NDR) were launched in June 2017 as the key drivers to accelerate the Exploration and Production (E&P) activities in India.
• The OALP is a critical part of the HELP which provides uniform licences for exploration and production of all forms of hydrocarbons, enabling contractors to explore conventional as well as unconventional oil and gas resources.
• Fields are offered under a revenue-sharing model and throw up marketing and pricing freedom for crude oil and natural gas produced.
• Under the OALP, once an explorer selects areas after evaluating the National Data Repository (NDR) and submits the EoI, it is to be put up for competitive bidding and the entity offering the maximum share of oil and gas to the government is awarded the block.
• The OALP auction will be held under the overhauled exploration licensing policy, allowing pricing and marketing freedom to operators and shifts to a revenue sharing model.

 

OBJECTIVES OF OALP

To increase India’s indigenous oil and gas production by maximising the potential of already discovered hydrocarbon resources in the country.

 

NATIONAL DATA REPOSITORY

NDR has been created to provide explorers’ data on the country’s repositories, allowing them to choose fields according to their capabilities. Data received through the National Seismic Programme, an in-depth study of 26 sedimentary basins, are continuously being added to the NDR.

 

HYDROCARBON EXPLORATION AND LICENSING POLICY

• The Hydrocarbon Exploration and Licensing Policy (HELP) replacing the erstwhile New Exploration Licensing Policy (NELP) was approved in March 2016.
• The main features of HELP are Revenue Sharing Contract, single Licence for exploration and production of conventional as well as unconventional Hydrocarbon resources, marketing & pricing freedom, etc.

 

WAY FORWARD

OALP is part of the strategy to make India a business and investor friendly destination and cut import dependence by 10% and achieve the plan to double existing oil production from current 80 million metric tons to about 150-155 million metric tons by 2022.

 

Source: PIB

 

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