Open Acreage Licensing Policy (OALP)

Open Acreage Licensing Policy (OALP) is a major reform that changed how companies can apply for oil & gas exploration blocks in India. Read more about Open Acreage Licensing Policy (OALP), Latest News

What is the Open Acreage Licensing Policy (OALP)

Open Acreage Licensing Policy (OALP) Latest News

Oil India undertook a seismic study of the blocks it was awarded during the ninth round of the Open Acreage Licensing Policy (OALP) to chart a bidding strategy for the tenth round.

About Open Acreage Licensing Policy (OALP)

  • It was introduced by the Government of India (GoI) as a part of the Hydrocarbon Exploration and Licensing Policy (“HELP”) on March 30, 2016.
    • HELP replaced the New Exploration and Licensing Policy (NELP) regime, which was in existence for over 18 years. 
  • OALP is a major reform that changed how companies can apply for oil & gas exploration blocks in India.
  • Under the OALP, the company has the option to undertake prospecting for fuels in areas which are not notified by the GoI. 
    • Prospecting refers to drilling the selected area to check availability of hydrocarbon fuels. 
  • The OLAP gives a company the opportunity to prospect for fuels in any area where the technical feasibility study indicates the presence of hydrocarbons. 
    • The technical feasibility study is an analysis which indicates the likelihood of availability of hydrocarbons in an area. 
  • Once the feasibility study shows the presence of hydrocarbons, the company can proceed with the exploration after obtaining permission from the Directorate General of Hydrocarbons (DGH). 
  • If multiple requests for sanction are received for the same area, the DGH will make an allotment by conducting an auction. 
  • Until the OALP was introduced, exploration for hydrocarbons was allowed only in the case of areas covered by the tenders issued by the GoI. 
  • Under the OALP the exploration can be made without waiting for an announcement from the GoI that an area is available for exploration. 
  • The OALP regime also allows companies access to seismic data at the National Data Repository (NDR).
    • NDR is an online data library containing:
      • Seismic surveys
      • Geological maps
      • Well logs
      • Exploration history
    • Companies can study the data and propose new blocks.

Source: TH

 

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Open Acreage Licensing Policy (OALP) FAQs

Q1. What is the Open Acreage Licensing Policy (OALP)?+

Q2. Under which broader policy was Open Acreage Licensing Policy (OALP) introduced?+

Q3. What major reform did Open Acreage Licensing Policy (OALP) bring to hydrocarbon exploration in India?+

Q4. What is the National Data Repository (NDR)?+

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