A Quantum Jump in Exploration

The domestic upstream oil and gas sector was hamstrung by the New Exploration Licensing Policy (NELP ), a regime came into effect in 1999 and was heavily dependent on government-announced auctions. Often delayed, these suffered from red tapism and were subject to disputes over cost recovery.

Consequently, it could attract limited investment, witnessed stagnant exploration, and India’s dependence on imported crude continued to rise.

Marking a decisive shift in the policy, in 2016, the Modi government introduced the Hydrocarbon Exploration and Licensing Policy (HELP), leading to the rollout of the Open Acreage Licensing Policy (OALP). This allowed companies to select areas of interest for exploration at any time of the year. It replaced episodic auctions with an investor-driven model, introducing a revenue-sharing contract that removed disputes over cost recovery between operators and the government.

As OLAP enabled investors to decide place and time to explore, it created a quantum jump in E&P activities.

Further empowering explorers, the government launched National Data Repository (NDR) in June 2017 to provide access to seismic and well data to ensure the Exploration and Production (E&P) activities gain steam in India. This enabled interested companies to come forward in identifying prospective blocks, filing an Expression of Interest (EoI), and participating in competitive bidding.

The government’s new policy not only expedited exploration decisions, but also opened previously underexplored sedimentary basins, besides ceasing bureaucratic roadblocks that affected upstream investment. As OLAP enabled investors to decide place and time to explore, it created a quantum jump in E&P activities. Moving away from the slow, bureaucratic pace of the NELP era, companies could now operate with speed, efficiency, and technical innovation.

Steadily expanding the country’s exploration footprint covering onshore, shallow offshore, and deepwater basins, OALP rounds since 2018 demonstrated a policy evolution from cautious experimentation to a cornerstone of energy security.

Round I in 2018 witnessed Vedanta emerging as the dominant player as it secured 41 out of the total 55 offered blocks. Following year, rounds II and III tested the appetite of investors on smaller acreage. However, it did not fall short from affirming the industry’s acceptance of the OALP framework.

But, later that year Round IV did not attract participation from private or international players and all seven blocks covering 18,500 sq km onland across three sedimentary basins was awarded to state-owned Oil and Natural Gas Corporation Ltd (ONGC).

The bidding process was carried out via online bidding portal, underscoring the Modi govt’s commitment to diversify and accelerate E&P efforts.

Building upon this momentum, Round V was launched in 2020, which offered 11 blocks across eight basins spreading over 19, 700 sq km. ONGC was awarded seven blocks and its state-owned peer Oil India Ltd (OIL) secured four, demonstrating resilience of the policy and ability to attract investment from homegrown players even amidst unprecedented global crises such as COVID-19 pandemic.

In August 2021, Round VI was announced expanding to over 35,300 sq km across 11 sedimentary basins across 21 blocks, including a mix of 15 onland, four shallow water, and two ultra-deepwater areas. Notably, the bidding process was carried out via online bidding portal, underscoring the Modi government’s commitment to diversify and accelerate E&P efforts maintaining transparency and efficiency in the process.

This was followed by Round VII rollout four months later, which offered eight blocks covering over 15,700 sq km across six sedimentary basins with a mix of five onland, two shallow water, and one ultra-deepwater areas. The round witnessed private players such as Sun Petrochemicals Pvt Ltd foraying into the upstream space alongside ONGC, OIL, and GAIL India Ltd.

Notably, exploration extended into frontier basins that had remained out of bounds under old NELP. Launched in 2023, Round VIII offered 8 out 10 blocks in offshore acreage, including four shallow water, two deep water, and two ultra-deep water blocks.

Breaking new grounds, Round IX announced in 2024 awarded 28 blocks covering over 1.36 lakh sq km, including previously designated ‘No-Go’ areas. As Notably international participation was witnessed through a consortium of London-headquartered BP with ONGC and Reliance Industries Ltd for a block in the Saurashtra basin. With 25 blocks covering around 1.92 lakh sq km, Round X launched in April 2025, appeared as the largest offering. Of the total offered acreage area, over 1.75 lakh sq km is offshore. This indicates a decisive push toward deepwater and ultra-deepwater exploration.

Across nine rounds, 172 exploration blocks covering 3,78,652 sq km have been awarded to successful bidders. OALP ensured commitments around $3.37 billion from rounds I and VIII for exploration programmes such as 2D and 3D seismic surveys, exploratory wells, and others. While investment commitments for Round IX is yet to be released, Round X is open. These commitments shows OALP in driving rapid expansion in India’s E&P sector, validating PM Modi’s vision of a transformative and investor-friendly upstream policy.

Going beyond block awards, OALP is of strategic importance to that country whose over 85 percent of crude oil and 50 percent of natural gas is imported. Expanding domestic exploration provides a critical buffer against global supply shocks.