The government is set to offer six blocks in the unexplored Vindhyan and Bengal sedimentary basins for oil and gas exploration. Under a new policy, the Centre will not charge royalties on production from companies operating in these areas.
The Directorate General of Hydrocarbons (DGH) will be inviting bids for seven oil and gas blocks during the fourth round of bidding under the Open Acreage Licensing Policy (OALP), likely to open on August 28, sources in the know said. The only block on offer in an already explored area in OALP-IV will be in the Rajasthan basin. Investors will get a window of 60 days to submit their bids.
The government sees this as a milestone in the country’s hydrocarbon sector, as investments so far were limited to only seven of the 26 sedimentary basins in the country.
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