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Open Acreage Licensing Policy

Open Acreage Licensing Policy:

India has offered eight blocks of oil and gas in the seventh bid round of Open Acreage Licensing Policy (OALP).

  • The objective is to bring more area under exploration, leading to increase in domestic production and reduction of imports.
  • OALP Launched under the Hydrocarbon Exploration and Licensing Policy (HELP) in 2017.
  • Under OALP, companies are allowed to carve out areas they want to explore oil and gas in.
  • Companies can put in an expression of interest (EOI) for any area throughout the year but such interests are accumulated thrice in a year.
  • The areas sought are then offered for bidding.
  • It 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.