Government’s new Hydrocarbon policy

Context

• Brand new oil and gas block licensing policy is introduced this Wednesday which will open up 2.8 million square kilometers of sedimentary basins for exploration and production activities.

Why government has come up with such policy?

• The lack of seismic sedimentary basin data had been hampering the oil and gas exploration and production sector till date.
• National Data Repository has now resolved the issue by providing the required data.

How will the policy function?

• Open Acreage License Policy(OALP), a part of the government’s Hydrocarbons Exploration and Licensing Policy(HELP), is allowing exploration companies to select their operation blocks.
• Such option has saved companies time from the formal bid round the government.
• The company just need to submit an application to the government, which puts the block up for bid.
• With this new model, frequent bidding will be possible.
• It will help reducing import dependence and achieving India’s quest for energy security.