India’s energy landscape has taken a significant step forward with the offering of 50 new exploration and production (E&P) blocks across oil, gas and coal bed methane (CBM) assets, marking a key milestone in the country’s efforts to boost domestic energy production and strengthen energy security, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has announced.
The minister described the announcement as a “transformative milestone” for India’s energy sector under the leadership of Prime Minister Narendra Modi. The move is designed to attract both domestic and global investments while tapping deeper into the nation’s sedimentary basins.
Under the latest licensing round, 25 blocks are being offered under the expanded Open Acreage Licensing Policy (OALP-X), covering approximately 1.83 lakh square kilometres. These include a mix of six onshore blocks, six shallow water blocks, one deepwater block and 12 ultra-deepwater areas, opening up diverse opportunities for exploration.
The terms for these blocks include investor-friendly features such as exploration rights retained throughout the duration of the contract, graded royalty reductions for offshore areas, and flexible work programme arrangements. In select basins, revenue sharing for the initial years has also been structured to support early-stage development.
In addition to OALP-X, the Discovered Small Field (DSF) Bid Round-IV has 55 discoveries up for offer across nine contract areas. This initiative aims to accelerate the transition from discovery to commercial production, with incentives such as zero royalty in deepwater areas for the first seven years and full marketing freedom on an arm’s-length basis.
The government is also advancing its Special CBM Bid Rounds for 2025 and 2026, which include a total of 16 CBM blocks, three in 2025 and 13 slated for 2026 to tap cleaner fossil fuel sources and support the country’s broader energy transition goals.
These developments are part of India’s broader strategy to modernise its energy sector, enhance self-reliance and reduce dependence on imported hydrocarbons. By attracting investment, simplifying regulatory frameworks and offering flexible terms, the government aims to unlock long-term growth across the exploration value chain.
