Oil India Ltd’s Blockbuster Move: 9 New Blocks, 51,000 sq km, and Counting

Image Source: ET EnergyWorld

Oil India Ltd (OIL) took a major stride in its quest for exploration, acquiring more than 51,000 sq km and increasing its overall exploration acreage to a whopping 110,000 sq km. The increase follows OIL's strong performance in the ninth round of the Open Acreage Licensing Policy (OALP-IX), where it acquired nine new blocks, consolidating its leadership in India's upstream oil and gas business.

OALP-IX Success and Acreage Growth

OIL acquired nine blocks in the OALP-IX auction: six individually and three in collaboration with ONGC, a huge victory in the recent government sale of oil and gas exploration prospects.
With this acquisition, the total exploration acreage of OIL has risen to 110,000 sq km from 61,000 sq km in 2024, demonstrating a strategic effort to increase domestic hydrocarbon production.
The firm acquired more than 51,000 sq km of assets, a huge addition that makes OIL a major player in India's energy security push.

OALP-IX Bid Round Overview

The OALP-IX round saw 28 blocks spanning about 136,000 sq km over eight sedimentary basins, including onshore, shallow water, and ultra-deepwater.
The auction saw fierce participation from major players: ONGC came out on top with 15 blocks, Vedanta grabbed seven, and the Reliance-BP-ONGC consortium won a strategic off-shore block in Gujarat.
OIL's nine-block victory reflects its increased technical and operating competence, particularly as it aims to increase both onshore and off-shore exploration.

Strategic and Policy Context

The government's OALP scheme, initiated in 2017, seeks to enhance indigenous oil and gas production by providing marketing and pricing autonomy on a revenue-sharing basis, and by exploring earlier closed 'no-go' areas.
OIL is proactively pursuing global partnerships, most recently an MoU with Brazil's Petrobras, to harness international experience in deepwater and ultra-deepwater exploration.
The company is stepping up exploration in lucrative areas like the Andaman basin, where it plans to drill multiple wells and invest lots of money.

Future Outlook

OIL plans to double its exploration acreage over the next few years, with a major thrust towards offshore areas, and plans to produce over 4 million metric tonnes of crude oil a year.
The company is utilizing high-end technologies and foreign consultants to develop the full hydrocarbon potential of its greater acreage.
Such activities fit in with India's general strategy of diminishing its dependency on energy imports and augmenting its domestic energy security.

Sources: Rediff, Moneycontrol, NDTV Profit, Economic Times, S&P Global, Upstox

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