- Recently, Vedanta company said that it had made a natural gas discovery in a block in Gujarat that it had won in the open acreage licensing policy (OALP) round.
- The discovery of this gas and condensate (named ‘Jaya’) was made in its exploratory well Jaya1, drilled in Open Acreage Licensing Policy (OALP) Block in Bharuch District of Gujarat.
About Open Acreage Licensing Policy
- The Open Acreage Licensing Policy (OALP) is a critical part of the Hydrocarbon Exploration and Licensing Policy (HELP) which replaced the erstwhile New Exploration Licensing Policy (NELP).
- The Open Acreage Licensing Policy (OALP) along with the National Data Repository (NDR) was launched in June 2017 as the key driver to accelerate the Exploration and Production (E&P) activities in India.
- About: The Open Acreage Licensing Policy (OALP) provides uniform licenses for the exploration and production of all forms of hydrocarbons, enabling contractors to explore conventional as well as unconventional oil and gas resources.
How does Open Acreage Licensing Policy work?
- Open Acreage Licensing Policy (OALP): under it, a bidder intending to explore hydrocarbons like oil and gas, coal-bed methane, gas hydrate, etc., selects areas after evaluating the National Data Repository (NDR).
- National Data Repository (NDR): created to provide explorers’ data on the country’s repositories, allowing them to choose fields according to their capabilities.
- Then it may apply to the Government seeking exploration of any new block (not already covered by exploration).
- The Government will examine the Expression of Interest (EoI) and justification. If suitable then, Government will call for competitive bids after obtaining necessary environmental and other clearances.
- The entity offering the maximum share of oil and gas to the government is awarded the block.
- Under Open Acreage Licensing Policy (OALP), oil and gas acreages will be available round the year instead of cyclic bidding rounds as in NELP.