NEW DELHI: The government has extended the bidding deadline for deepwater and ultra-deepwater oil and gas exploration blocks under the 10th and 11th open acreage licensing policy (OALP) rounds to December 10, giving prospective investors another 25 days to submit offers. The latest postponement marks the seventh extension for OALP-10 and the third for OALP-11, even as the Centre has introduced fresh financial support measures for offshore exploration.
The directorate general of hydrocarbons (DGH), the upstream nodal agency under the petroleum ministry, has revised the deadline from November 15 to December 10, 2026, for deepwater and ultra-deepwater blocks offered under both rounds. The extension comes weeks after the government released operating guidelines for its Rs 84,084-crore Samudra Manthan National Offshore Exploration Scheme on October 22, offering financial assistance for deepwater exploration. Under the scheme, the Centre will bear up to 50% of eligible deepwater drilling costs, subject to a ceiling of Rs 675 crore per well. The programme aims to reduce the financial risks associated with exploration in offshore areas where commercial discoveries remain uncertain.
The 10th OALP round, launched in February 2025, offered 25 exploration blocks covering approximately 1,82,589 square km across 13 sedimentary basins, making it the country’s largest licensing round by acreage at the time. The round comprises six onshore blocks, six shallow-water blocks, one deepwater block and 12 ultra-deepwater blocks. Of the 25 blocks, 19 are offshore, including 13 deepwater and ultra-deepwater blocks covering approximately 1,24,327 sq km. Bidding was originally scheduled to close in July 2025 but was subsequently extended to October 31, December 31 and February 18, 2026, before being pushed to June 19. While bidding for onshore and shallow-water blocks closed on June 19, the deadline for deepwater and ultra-deepwater acreage was extended to September 17, then November 15 and now December 10.
The 11th round, launched in March 2026, offered another 21 blocks covering 80,234.49 sq km across 11 sedimentary basins.
These comprise 12 onshore blocks, four shallow-water blocks, one deepwater block and four ultra-deepwater blocks. Nine blocks are offshore, covering approximately 45,296 sq km.
Bidding for the 11th round of OALP began on March 30, with the onshore and shallow-water portion closing on June 19. The remaining deepwater and ultra-deepwater blocks were given successive extensions to September 17, November 15 and December 10.
The Samudra Manthan scheme, approved by the Union Cabinet in July, has an outlay of Rs 84,084 crore through FY31 and aims to unlock more than 600 million tonne of additional oil-equivalent hydrocarbon resources.
The programme provides Rs 28,534 crore for offshore seismic data acquisition and processing and Rs 43,200 crore for accelerated offshore exploration, including drilling 60 deepwater exploratory wells. Another Rs 10,000 crore has been earmarked for common offshore infrastructure and Rs 2,000 crore for oil and gas manufacturing and services zones.
According to the petroleum ministry, drilling a single deepwater exploratory well can cost an estimated $125 million to $150 million, reflecting the substantial investment required in offshore exploration.
India imports more than 88% of its crude oil requirements, placing greater emphasis on domestic exploration and development of hydrocarbon resources.
The OALP framework, introduced under the Hydrocarbon Exploration and Licensing Policy in 2016, allows companies to identify exploration acreage and express interest in bidding. The broader reform programme has included revenue-sharing contracts, marketing and pricing freedom for produced hydrocarbons, amendments to the Oilfields (Regulation and Development) Act, and the opening of previously restricted offshore acreage for exploration.
Source: The Financial Express
