The Ministry of Petroleum and Natural Gas have launched the landmark Open Acreage Licensing Programme (OLAP) for international competitive bidding of oil fields.
For the first time in India, 55 bidder selected blocks, each carved out by prospective bidders themselves in promising basins with an area of 59,282 sq kms were announced for bidding. This is the largest offering of acreages, the government has launched in the past eight years.
The ebidding portal and Notice Inviting Offer (NIO) was launched in the presence of Dharmendra Pradhan, Union Petroleum Minister in the presence of captains of industry, ambassadors, policy makers, bankers, leading professionals from E&P (exploration and prospecting) companies.
The bidders can start submitting bids from tomorrow, the officials said. The Minister said that a reassessment of oil resources study was done for the first time in two decades which indicated a significant increase (above 50%) in resource estimation. He said that India is the third largest energy consuming nation with over 35% of the energy demand met through oil and gas supplies.
Mr Dharmendra Pradhan said that he was proud to announce that it is first time in the history the oil & gas industry block offering will be selected by E&P operators themselves and not by the government.This is the largest ever offering for E&P in more than a decade.