New Delhi, Dec 30: Indian Petroleum and Natural Gas Minister Hardeep Singh Puri announced the offering of 50 new blocks for oil and gas exploration, marking a significant milestone for the country’s energy sector.
This includes 25 blocks under the 10th round of the oil exploration and licensing policy (OALP-X) and 55 fields across 9 contract blocks in the fourth bidding round for discovered small fields (DSF-IV), along with 16 blocks in the Special CBM Bid Rounds for 2025 and 2026.
Puri emphasized the introduction of a unified regulatory framework through the Oilfields (Regulation and Development) Amendment Act, 2025, which separates petroleum operations from mining. Notably, the revenue-sharing contract model aims to ease business operations. A single license for both conventional and unconventional hydrocarbons has been implemented, allowing exploration throughout the contract duration and offering reduced royalty rates.
The available E&P blocks cover approximately 183,000 sq km across various terrains, including onland, shallow water, deepwater, and ultra-deepwater areas. Rights retention throughout the contract is guaranteed, and initial revenue shares are fixed, with no revenue sharing in certain categories until windfall gains are realized. The bidding for discovered small fields features 9 contract areas with incentives such as 0% royalty for the first seven years in deepwater.
Companies will benefit from the “arms-length sales principle” for marketing oil and gas and may extend work programs on a payment basis. Importantly, prior experience in the oil and gas sector is not required, encouraging wider participation. The special CBM Bid Round is currently open, offering essential blocks in West Bengal and Gujarat. The government’s initiatives are aimed at accelerating production to support India’s economic growth and self-reliance.
