New Delhi

India is preparing to offer 21 blocks for oil and natural gas exploration in the next bidding cycle under the Open Acreage Licensing Policy (OALP), according to the Directorate General of Hydrocarbons.

The proposed blocks for the 11th round, known as OALP-XI, include a mix of 12 onshore areas, four shallow-water blocks, one deepwater block, and four ultra-deepwater blocks. Together, these cover an estimated 80,235 square kilometres.

While the timeline for bid submissions is yet to be formally announced, the regulator has already shared details of the blocks and bidding criteria. Notably, this announcement comes even as the previous round, OALP-X, is still open for bids.

Under the bidding framework, companies competing for Category-I sedimentary basins—areas with established oil and gas production—will be evaluated based on the revenue share they offer to the government, along with the scale of their proposed exploration work.

For Category-II and Category-III basins, which either have known hydrocarbon presence without commercial production or are considered geologically promising but unexplored, the selection will primarily depend on the extent of the work programme, including seismic surveys and drilling commitments.

The OALP-X round, launched during India Energy Week 2025, remains the largest offering so far, featuring 25 blocks spanning nearly 1.92 lakh square kilometres across multiple sedimentary basins. Its bid deadline, initially set for mid-2025, has been extended multiple times and is currently open until May 29, 2026.

Since the introduction of OALP, the government has significantly expanded exploration opportunities. Across the first nine rounds, approximately 3.78 lakh square kilometres were offered for bidding. The earlier OALP-IX round alone included 28 blocks covering around 1.36 lakh square kilometres.

The OALP system was introduced in 2016 as part of the broader Hydrocarbon Exploration and Licensing Policy (HELP), replacing the earlier approach where the government pre-identified blocks. The new system allows companies to propose areas for exploration, offering greater flexibility.

HELP also provides several incentives to attract investment, including reduced royalty rates, no oil cess, full exploration rights over the contract period, and freedom in pricing and marketing of hydrocarbons.

Participation in recent rounds has included both public and private players. Companies such as Oil and Natural Gas Corporation, Oil India Ltd, and Vedanta Ltd have been active bidders. In a notable collaboration, Reliance Industries Ltd partnered with BP Plc to jointly bid alongside ONGC for a block in Gujarat offshore.

In the OALP-IX round, ONGC secured the largest share of blocks, both independently and in partnership with Oil India, while Vedanta also emerged as a key winner after bidding for all available blocks.

READ MORE: Alfiya Pathan: The rising boxing Star from Nagpur, aspiring to be the Next Mary Ko

The upcoming OALP-XI round is expected to further boost exploration activity, as India continues efforts to enhance domestic oil and gas production and reduce dependence on imports.