In a significant development for India’s energy sector, a collaborative venture comprising state-owned Oil and Natural Gas Corporation (ONGC), Reliance Industries (RIL), and global energy powerhouse bp has secured its first offshore oil block in Gujarat. This achievement occurs during the ninth round of bidding under the Open Acreage Licensing Policy (OALP), marking a milestone for the consortium and the country’s energy landscape.
Major Wins in the OALP Bidding
During this competitive bidding process, ONGC emerged victorious, claiming a total of 11 blocks independently while partnering on an additional four. Meanwhile, Vedanta’s Cairn Oil and Gas has successfully acquired seven oil blocks.
The consortium, where ONGC holds 40%, RIL has 30%, and bp also takes 30%, won the GS-OSHP-2022/2 block located in the Saurashtra basin. A bp spokesperson highlighted the significance of this partnership, stating, “This alliance harnesses the strengths of India’s largest national oil and gas entity, ONGC, alongside Reliance Industries, the country’s foremost conglomerate, and bp, a global energy leader. This collaboration is a pivotal step toward bolstering India’s energy security.”
Expanding Exploration Efforts
The latest OALP round—OALP-IX—spanned a vast area of 136,596 square kilometers, comprising 28 blocks available for exploration. Additionally, the government has initiated discovered small fields bid round IV, offering 55 discoveries spread across nine contract areas.
Furthermore, the introduction of the draft Petroleum and Natural Gas (PNG) Rules 2025 aims to implement new regulations stemming from the Oilfields (Regulation and Development) Act. Key provisions include:
- Renewal and extension of leases
- Unitisation of leases
- Sharing production and processing facilities
- Dispute resolution mechanisms
- Site restoration initiatives
- Comprehensive management of mineral oils
- Strategies for decarbonization
Future Energy Demands
Hardeep Singh Puri, the Oil Minister, emphasized the progress made since 2014, stating, “76% of the total area currently under exploration has been activated only in this timeframe.” He also announced the launch of OALP-X, featuring 25 blocks across 13 sedimentary basins. Puri projected that in the coming two decades, 25% of the world’s increased energy demand will stem from India, showcasing the country’s pivotal role in the global energy landscape.
This recent consortium victory is not just a win for the companies involved but also a crucial step toward enhancing India’s energy independence and security. As the nation continues to develop its energy resources, collaborations like these are vital for meeting future energy needs effectively.
