New Delhi, February 11, 2025 – India has opened its largest oil and gas bid round on Tuesday, offering 25 blocks covering 1.91 lakh square kilometers, primarily in offshore areas. The move aims to enhance domestic production and reduce import dependency, ensuring energy security. The 10th bid round under the Open Acreage Licensing Policy (OALP) was inaugurated by Petroleum Minister Hardeep Singh Puri at the India Energy Week (IEW).
The OALP-X round features 25 blocks spread across 1,91,986 square kilometers in 13 sedimentary basins, with 13 blocks located in offshore areas. In comparison, the previous nine rounds offered a total of 3.78 lakh square kilometers.
The OALP-IX bid round, which was the largest before the current round, featured 28 blocks or areas covering 1.36 lakh square kilometers. It attracted four bidders, including state-owned Oil and Natural Gas Corporation (ONGC), Oil India Ltd, and private sector Vedanta Ltd, with most blocks receiving two bids. Notably, Reliance Industries Ltd-BP Plc combined with ONGC for the first time to bid for a block in Gujarat offshore.
Despite the bid submissions, the government has yet to award OALP-IX blocks to winners. In OALP-IX, ONGC bid for 14 blocks alone and four blocks with partners such as Oil India Ltd (OIL) and Indian Oil Corporation (IOC), totaling bids for 19 out of the 28 blocks.
Vedanta Ltd, owned by mining billionaire Anil Agarwal, bid for all 28 blocks in the OALP-IX round, while Sun Petrochemicals Ltd bid for seven areas. Four blocks received three bids each, while the rest had two bidders, including Vedanta Ltd.
The OALP was introduced in 2017 to attract oil and gas firms to develop India’s upstream sector, guaranteeing marketing and pricing freedom with a revenue-sharing model and reduced royalty rates.
The government hopes that opening more acreage for exploration will boost India’s oil and gas production, reducing the USD 222 billion oil import bill. The open acreage policy allows explorers the freedom to identify prospective areas for oil and gas exploration, with the firm identifying the area receiving a five-point advantage.
Mining mogul Anil Agarwal’s Vedanta Ltd secured 41 out of 55 blocks in the very first round and another 10 areas in subsequent rounds, while state-owned firms dominated other rounds.