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India launches third round of oil and gas blocks for exploration

Reuters  |  NEW DELHI/MUMBAI 

By and Promit Mukherjee

NEW DELHI/MUMBAI (Reuters) - on Sunday launched the third bidding round under its open acreage licensing policy (OALP), according to a government statement.

Twenty three blocks covering an area of 32,000 square kilometers were offered for bidding, out of which 5 are for extraction of coal bed methane.

Total exploration acreage is expected to more than triple to 300,000 square kilometres in two years ending 2019, the statement read.

The third round of bidding is expected to generate up to $700 million, the government said.

has set a target to cut India's dependence on to 67 percent by 2022.

Under the target, wants to quickly monetise its hydrocarbon reserves and bring in foreign participation to explore and produce from them.

has failed to draw interest from global in licensing rounds since 1990 even though the fiscal terms were eased.

India is so far producing only from seven sedimentary basins out of the 26 that it has discovered.

(Reporting Vadradhan and Promit Mukherjee, editing by Alasdair Pal)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, February 10 2019. 17:28 IST
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