Production Of Hydrocarbons Under OLAP Bid

 

Context

The Ministry of Petroleum & Natural Gas (MoPNG) has offered 8 blocks spread over 0.42 lakh sq km for exploration and production (E&P) of hydrocarbons under the Open Acreage Licensing Policy (OALP) bid round IX.

Key Points

• The government has reduced 99% of the "No Go" areas in the Indian offshore.
• Geographical areas designated as "No Go" areas are those where exploration operations are prohibited for tactical reasons.
• The blocks are distributed as follows: two in Saurashtra, two in the Assam Shelf, one in the Cambay Basin, and three in the Cauvery Basin.
• Two of the blocks are in Category-II basins with contingent resources, while the other six are in Category-I basins with proven hydrocarbon resources. Soon, there will be a notice inviting offers for these blocks in an international competitive bidding process.

• Category–I have proven hydrocarbon resources with established commercial production.
• Category–II has contingent resources that are yet to be converted to recoverable reserves and commercial production.
• Category–III have prospective resources awaiting discovery.

Open Acreage Licensing Policy (OALP)

• Under the Hydrocarbon Exploration and Licensing Policy (HELP), OALP was launched.
• By assessing exploration and production (E&P) data from the National Data Repository, OALP enables investors to select the blocks they want.
• The formal biannual bidding process would be used to offer these blocks.

Hydrocarbon Exploration and Licensing Policy (HELP)

• In order to increase oil and gas production in the Indian sedimentary basin, HELP was launched.
• It is based on the Revenue Sharing Contract model.
• For the exploration and production of hydrocarbons, including shale oil, coal-bed methane, conventional oil, and gas, it provides a single license.

 

 

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