Did Modi's Government Really Open One Million Sq Km for Oil-Gas Exploration?
Click to start listening
Synopsis
The Modi government has dramatically opened one million sq km of sedimentary basin for oil and gas exploration, aiming to boost domestic production and reduce import reliance. With new policies in place, India is set to tap into previously restricted areas, potentially revolutionizing its energy sector and marking a significant milestone in the nation's oil journey.
Key Takeaways
- One million sq km of sedimentary basin opened for exploration.
- Transition from NELP to OALP for streamlined processes.
- OALP X features 25 Blocks across various sedimentary basins.
- Focus on high-potential zones like the Andaman Sea.
- Emphasis on sustainability and investor-friendly reforms.
New Delhi, June 22 (NationPress) The Narendra Modi administration has unveiled an expansive area for oil and gas exploration, releasing an astonishing one million sq km from India’s total 3.5 million sq km sedimentary basin, previously restricted for hydrocarbon activities, as stated by Minister of Petroleum and Natural Gas Hardeep Singh Puri on Sunday.
“Under the visionary leadership of Prime Minister Narendra Modi, this entire ‘No-Go’ area has now been liberated to enhance domestic production and reduce import reliance,” the minister remarked.
Puri also noted that, in conjunction with the new legislation governing exploration and production, various initiatives have been introduced to improve the business environment in the oil and gas exploration and production (E&P) sector.
The Modi government has transitioned from the previous New Exploration and Licensing Policy (NELP) to the Open Acreage Licensing Policy (OALP), aiming to expedite the oil and gas search in India.
Under OALP IX, around 38 percent of bids originated from these newly available zones, with expectations that this figure could rise to 75 percent in the upcoming OALP X round, the minister indicated.
Puri highlighted that OALP X represents India’s largest bidding round to date, offering 25 Blocks for oil and gas exploration across 13 sedimentary basins, spanning an extensive area of 191,986.21 sq km.
Among these hydrocarbon exploration blocks, six are located on land, six are situated in offshore shallow waters, one is in deep water, and 12 are in ultra-deep-water regions, as explained by Puri.
“Attention is now shifting toward high-potential areas. The Andaman Sea, previously unexplored, could soon transform into India's equivalent of a Guyana-scale success story. This could truly mark India’s Big Oil Moment!” the minister expressed.
Puri had previously stated that the Indian hydrocarbon sector is entering a new phase of accelerated exploration and development, driven by investor-friendly reforms, rapid approvals, scientific exploration, and a robust focus on sustainability.
The minister projected that in the next two decades, 25 percent of the world’s incremental energy demand growth will originate from India.
Reflecting on history, Puri noted that the years 2006 and 2016 were characterized as a “dull decade” plagued by policy paralysis and procedural delays, causing the withdrawal of global energy leaders like BG, ENI, and Santos. However, the situation has changed. “We were committed to unleashing India’s untapped energy potential, estimated at approximately 42 billion tonnes of oil and oil equivalent of gas,” he concluded.
Point of View
The unveiling of one million sq km for hydrocarbon exploration marks a pivotal moment for India's energy sector. It reflects the government's commitment to reducing import dependence and bolstering domestic production. While historical challenges have plagued the sector, the new policies and reforms signal a hopeful transition towards sustainable energy independence.
NationPress
22/06/2025
Frequently Asked Questions
What has the Modi government opened for exploration?
The Modi government has opened up one million sq km of sedimentary basin in India for oil and gas exploration, which was previously restricted.
What is the Open Acreage Licensing Policy (OALP)?
OALP is a new policy that replaces the earlier New Exploration and Licensing Policy (NELP), aimed at accelerating oil and gas exploration in India.
What areas are included in the latest exploration round?
The latest round, OALP X, includes 25 Blocks for exploration across 13 sedimentary basins, with a total area of 191,986.21 sq km.
How many bids were received for the newly opened zones?
In OALP IX, approximately 38 percent of bids were for the newly opened zones, and this figure could increase to 75 percent in OALP X.
What is the expected impact on India's energy demand?
It is projected that 25 percent of the world's incremental energy demand growth will come from India in the next two decades.
