Govt inks contract with investments of 6,000 cr in OALP
The much-awaited signing of contracts for 55 blocks awarded under the Open Acreage Licensing Programme (OALP), Bid (Round-I) took place on Monday. The contracts, which were to be initially signed on September 6 were deferred by the Directorate General of Hydrocarbons (DGH) — the upstream technical arm of the Ministry for Petroleum and Natural Gas — without citing any reasons.
Under the open acreage regime, bidders are allowed to decide the areas they wished to bid and then the bidders can carve out the blocks they want from the entire acreage data available to them. The DGH then called for bids to establish rights of developing the assets based on the amount of revenue the companies can share with the government.
The Centre now is gearing up for the next round of bids under the open acreage regime, where 14 blocks will be offered out of which Four blocks in the Mahanadi Basin have been carved out by the Directorate-General of Hydrocarbons and 10 blocks have been identified by bidders.