Major discovery likely from blocks offered in OALP rounds, says OIL CMD

Under the recently ended ninth round of auctions under OALP, the company bagged a total of nine blocks, adding 51,000 sq. km to its exploration portfolio, out of which it won three blocks (one each in Cambay basin, Mahanadi basin and Assam Shelf basin) in partnership with Oil and Natural Gas Corp. (ONGC).

Also Read | Oil India first PSU to reduce arbitration after finance ministry’s advisory

Rath told Mint: “All these blocks have been reviewed by inhouse team as well as by overseas consultants to aid in our mission to discover hydrocarbons. Although exploration warrants tenacity, with our concerted efforts, we are optimistic of a major discovery in the acreage offered in OALP-IX round and subsequent ramp up in production”.

Rath noted that the exploration blocks awarded during initial OALP bid rounds are under drilling. It made the initial drilling in the first offshore well under the OALP regime in the Andaman & Nicobar Basin in November 2024. The drilling campaign in OALP acreages in the Assam Shelf, Rajasthan basin and Mahanadi basin is under progress, he added.

Also Read | Oil and gas, once eager for Trump’s return, is feeling whiplash

“Recently, we have established presence of oil in the north bank of river Brahmaputra in one of our OALP block. The establishment of oil in north bank is a significant milestone in the history of hydrocarbon exploration in the Upper Assam Shelf basin. Major discovery in the acreage offered in various OALP rounds and subsequent ramp-up in production is a matter of time,” the CMD said.

The blocks won under the ninth round take OIL’s total exploration acreage from 60,000 sq. km to 110,000 sq. km. Over 47,000 sq. km of the newly awarded acreage lies in deep and ultradeep offshore waters.

OIL has also made its debut in the Cambay Basin and the state of Meghalaya, unlocking fresh opportunities in untapped regions.

Also Read | OPEC cuts oil demand outlook amid US tariff hit despite output hike

The results of the ninth round of auctions for 28 hydrocarbon blocks under the OALP were announced on Tuesday, with state-run ONGC securing 15 blocks—four in partnership with other players, and 11 independently. Vedanta Group’s Cairn Oil & Gas secured seven blocks.

The OALP mechanism under the Hydrocarbon Exploration and Licensing Policy allows investors to carve out blocks of their choice by assessing exploration and production data available at National Data Repository and by submitting an Expression of Interest.

Intensifying exploration efforts

In its annual report for FY24, the company said that Oil India is intensifying its exploration efforts to supplement its existing domestic reserves portfolio by consolidating its position as a leader operator in northeast India, expansion in Rajasthan and Mahanadi Basin, and offshore in Andaman and Kerala Konkan Basin.

Its shares on the BSE closed at ₹378.45 on Wednesday, higher by 3.29% from its previous close.