Open Acreage Licensing Policy (OALP)

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admin August 30, 2021
Updated 2021/11/04 at 12:58 PM

 In an attempt to boost domestic hydrocarbon production, the petroleum and natural ministry launched the sixth bid round under the liberal Open Acreage Licensing Programme (OALP). In March 2016, the Hydrocarbon Exploration and Licensing Policy (HELP) was authorised, replacing the previous New Exploration Licensing Policy (NELP). The National Data Repository (NDR) and the Open Acreage Licensing Policy (OALP) were announced in June 2017 as significant drivers to expedite India’s exploration and production (E&P) activities. Companies are able to carve out regions in which they intend to explore oil and gas under the OALP. Companies can submit an expression of interest (EOI) for any region at any time during the year, but they can only do so three times per year. The sought-after regions are subsequently put up for auction. This policy differs from previous ones, in which the government chose places and put them up for bid.

What is the need for this policy?

India is one of the world’s fastest developing major economies. After the United States and China, it is the third-largest user of petroleum products. India relies largely on crude oil imports to meet its energy demands. Crude oil net imports have risen from 111.50 metric tonnes in 2006-07 to 202.85 metric tonnes in 2015-16. In light of this, India has set a goal of reducing its reliance on crude oil imports by 10% by 2022.

News source: Press information Bureau

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