The Indian Government is set to put up 55 exploration blocks for auction under the new Hydrocarbon Exploration and Licensing Policy (HELP).
This auction will help bring around 2.8 million km² of unexplored area under exploration, according to an exclusive report of Press Trust of India.
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Bids will be sought by the first week of April, while blocks are likely to be awarded by end of June.
Directorate General of Hydrocarbons director general Atanu Chakraborty told the news agency that the policy allows companies to place an expression of interest (EoI) for blocks currently not under any production or exploration licence.
The blocks that receive EoIs are called for bidding and the firm that initially chooses the area will draw a five-mark advantage.
Chakraborty told PTI: “The EoI opened in July last year and we got EoIs for 57 blocks by the end of the deadline on November 15. After scrutiny and eliminating areas in no-go zone and overlapping, 55 blocks remain which are being put up for auction beginning tomorrow.”
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By GlobalDataThese 55 blocks encompass a total area of 59,282km².
He further added: “This is significant when we compare it to about 1.2 million square kilometres being under exploration currently. The round opening tomorrow would lead to a jump in area under exploration by 50%.”
Oil and Natural Gas Corp (ONGC) and Cairn India bid for 41 out of 57 areas put up for auction in November last year, while Hindustan Oil Exploration Co (HOEC) bid for one area.
The opening up of 2.8 million km² of basin for exploration is expected to boost the country’s production.
According to Chakraborty, under the new policy, ‘regulatory oversight burden is less’.
Until now, the government has been selecting areas that are offered for bidding for exploration licences.
