ONGC, Reliance-BP, and Others Bid for Oil and Gas Exploration in OALP's Eighth Round

11 Jul 2023 , 11:38 AM

State-owned energy companies ONGC and Oil India Ltd, Reliance-BP, Vedanta led by Anil Agarwal, and Sun Petrochemicals Pvt Ltd have submitted bids for oil and gas exploration in 10 blocks under the eighth round of OALP.

A total of 13 bids have been placed, with ONGC submitting nine bids and the others submitting one each. However, no global oil exploration majors participated in the bidding round.

The Indian government initially offered the blocks in July last year, and the bidding deadline was extended multiple times before closing last week. ONGC was the sole bidder for six blocks, while Reliance-BP secured the ultradeep sea block in the Krishna Godavari basin as the sole bidder.

Vedanta, OIL, and Sun Petrochemicals bid for one block, competing with ONGCs. The 10 blocks cover nine sedimentary basins, including areas on land, shallow water, deep water, and ultra-deepwater.

The government offers incentives such as reduced royalty rates, exemption from oil cess, a uniform licensing system, marketing and pricing freedom, and a revenue-sharing model for winning bidders.

Exploration rights will be granted for the entire contract, and concessional royalty rates will be provided for early commercial production. The government has also invited expressions of interest (EoI) for the ninth round of offshore bid rounds, opening up 99% of previously restricted ‘no-go’ areas in the Exclusive Economic Zone (EEZ) for hydrocarbon exploration and development.

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