Daijiworld Media Network - New Delhi
New Delhi, Dec 29: India’s energy sector is poised for a major boost with the government offering 50 new oil and gas exploration and production (E&P) blocks to investors, Petroleum and Natural Gas Minister Hardeep Singh Puri announced on Monday. He described the move as a “transformative milestone” for the country’s push towards energy self-reliance.
Of the 50 blocks, 25 are part of the 10th round of the Oil Exploration and Licensing Policy (OALP-X), while another 55 fields across nine contract blocks are being offered under the fourth bidding round for discovered small fields (DSF-IV). Additionally, 16 blocks are included under the Special Coal Bed Methane (CBM) Bid Rounds 2025 and 2026, with three in 2025 and 13 in 2026.
“The quest to unlock the potential of India’s sedimentary basins has gained new momentum,” Puri said on X. He highlighted the introduction of a unified regulatory framework through the Oilfields (Regulation and Development) Amendment Act, 2025, and the PNG Rules 2025. This framework separates petroleum operations from mining and introduces a revenue-sharing contract model to streamline investment.
Key incentives for investors include:
• A single license covering both conventional and unconventional hydrocarbons.
• Rights to exploration throughout the contract duration.
• Reduced royalty rates, with graded incentives for offshore and deepwater blocks.
• Flexibility to swap work programs and extensions for ongoing projects.
• Freedom to market oil and gas under the “arms-length sales principle.”
• No mandatory prior experience in oil and gas for investors.
The 25 E&P blocks offered under OALP-X cover approximately 183,000 sq km, spanning onland, shallow water, deepwater, and two ultra-deepwater areas. For Category-I basins, revenue sharing is fixed at the LRP for the first 5-7 years, while Cat-II/III blocks see no revenue sharing until windfall gains.
The DSF-IV round includes nine contract areas with 55 discoveries, offering zero percent royalty for the first seven years in deepwater blocks, along with flexibility in work programs. Meanwhile, the Special CBM Bid Round-2025 features three onland blocks, including two in West Bengal’s Raniganj Coalfield and one in Gujarat’s Cambay Basin.
“The government is incentivising expedited production to fuel India’s economic growth and energy self-reliance,” Puri added, emphasizing the sector’s potential to attract domestic and international investments.
This initiative underscores India’s commitment to expanding domestic energy production while offering investor-friendly policies to strengthen the country’s energy security.