India has reached a transformative milestone in its energy sector by offering fifty new exploration and production (E&P) blocks across oil, gas, and coal bed methane (CBM) assets. The move signals a renewed push to unlock domestic hydrocarbon potential and strengthen the country’s energy security, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said. The initiative reflects India’s growing openness to both global and domestic investors, while reinforcing confidence in the country’s upstream energy ecosystem.
Open Acreage Licensing Policy Expands Exploration Opportunities
Under the Open Acreage Licensing Policy (OALP), the government has offered 25 blocks covering approximately 1.83 lakh square kilometres. These include six onland blocks, six shallow-water blocks, one deepwater block, and 12 ultra-deepwater blocks. Through this diversified portfolio, the government aims to attract investment across varied geological terrains while accelerating exploration activity.
DSF Bid Round-IV Targets Faster Transition from Discovery to Production
At the same time, the Discovered Small Field (DSF) Bid Round-IV features 55 discoveries spread across nine contract areas. The round focuses on shortening the time between discovery and production, thereby enabling faster monetisation of hydrocarbon resources. To support investor participation, the government has introduced several incentives. These include zero royalty for the first seven years in deepwater areas, full marketing freedom on an arm’s-length basis, and relaxed eligibility criteria, with no mandatory prior experience in oil and gas operations.
Incentives Extended to Coal Bed Methane Rounds
Similarly, the government has extended flexible terms and incentives to the CBM rounds. These include complete pricing freedom, no overlap with coal blocks or mining areas, and, beginning with the 2026 round, government reimbursement of costs for mandatory core-hole drilling. As a result, CBM development is expected to gain momentum as an important contributor to India’s domestic gas production.
Unified Regulatory Framework Strengthens Investor Confidence
Highlighting regulatory reforms, the minister noted that India has introduced a unified regulatory framework through the Oilfields (Regulation and Development) Amendment Act, 2025. As reported by tribuneindia.com, the landmark amendment delinks petroleum operations from mining, thereby simplifying compliance and approvals. In addition, the Petroleum and Natural Gas (PNG) Rules, 2025 further streamline governance and provide regulatory clarity, creating a more stable and predictable environment for investors.
