India is set to launch its tenth bidding round for oil and gas blocks in August or September, the Directorate General of Hydrocarbons (DGH) has said. The latest round will include 25 blocks across 13 sedimentary basins, which are essential for exploration and production activities. The areas on offer range from land blocks covering 16,871 square kilometers, to shallow water blocks and even ultra-deepwater blocks extending over 12,373 square kilometers.
The move aims to attract significant investment and boost domestic oil and gas production.
In the previous ninth bidding round under the Hydrocarbon Exploration and Licensing Policy (HELP), the government extended the deadline multiple times in order to provide more detailed data to help companies make informed decisions that it hoped would improve the lukewarm response the earlier rounds generated. Some of the lukewarm responses from foreign firms have been linked to concerns about indemnity and compensation issues-issues that India is working to address.
The ninth bidding round, with 28 oil and gas blocks up for grabs, was originally set to close on February 29, but was extended until May 15. India then extended it to July 15. India now has extended it until August 31.
The Indian government is also working on shrinking approval times to enhance domestic production and decrease reliance on imports.
For India-the world's second-largest oil importer-foreign investment in developing its oil and gas industry is critical, with the country's crude oil demand growing this year despite higher prices. According to the IEA, India is set to become the biggest driver of oil demand growth in the world between now and 2030. It currently imports 4.6 million bpd.
By Julianne Geiger for Oilprice.com
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