With changed rules under the revised Open Acreage Licensing Policy (OALP) allowing contractors bidding for blocks in category 2 and 3 basins to not share any revenue unless windfall gains are made, explorers including state-run ONGC are looking to carve out blocks in these basins starting from the fourth round.
Category 2 and 3 basins are unexplored and not much geoscientific data are available about them. “We will focus on category 2 and 3 basins from the next round (of OALP) and work to look for new discoveries,” an ONGC executive said. This will put new basins on India’s hydrocarbon production map. During the first three rounds, a few blocks from category 2 and 3 basins were carved out by explorers. Of the 55 expressions of interest submitted during the first round, 49 were in category 1 basin with proven commerciality. In the second and third rounds, the Directorate General of Hydrocarbons carved out nine blocks from category 2 and 3 basins and put up for bidding. “We will develop a portfolio (of blocks) which will have focus on new basins,” the executive added.
