Author:- Vidhya Anbu Durai.
Petroleum Minister Dharmendra Pradhan on Wednesday introduces a new oil and gas block licensing policy that is expected to open up 2.8 million square kilometres of sedimentary basins to exploration and production activities. The Minister was speaking at the inauguration of the government’s Open Acreage Licensing Policy (OAPL) and the National Data Repository.
The OALP, a part of the government’s hydrocarbon policy has issued permission to the companies to extract the oil and gas from the place and it is also said they can select their own spots to start the work without waiting for a formal government announcement. The company then ought to submit an application of the block so that the government can put that up for bid.
“OALP is a fundamental shift and a very transformative step in India’s E&P history, said acting CEO of Vedantan Cairn Oil and Gas, Sudhir Mathur. This decision will go a long way towards reducing import dependence and achieving India’s quest for energy security. During his speech, Mr. Pradhan said that his Minister was working on developing a gas trading hub to support a robust marketing network.
About 52% of India’s sedimentary basins are unappraised with the last appraisal taking 25 years ago. The lack of seismic sedimentary basin data was hampering the exploration and production sector of the oil and gas industry.