Government Extends Oil and Gas Block Auction Deadline to February 2026
The Indian government has extended the deadline for submitting bids in the latest oil and gas block auction (OALP-X) to February 18, 2026. This marks the third extension, with the round offering 25 blocks covering approximately 191,986 square kilometres across 13 sedimentary basins. The extension also applies to the fourth round of Discovered Small Field (DSF) bid round and the special coal-bed methane (CBM) round. OALP-X represents the largest acreage offering to date, including significant blocks in the Andaman basin. The auction operates under the Hydrocarbon Exploration and Licensing Policy (HELP), aiming to boost domestic oil and gas production.
*this image is generated using AI for illustrative purposes only.
The government has extended the deadline for submitting bids under the latest oil and gas block auction for the third time, providing potential investors with additional time until February 18, 2026. The Directorate General of Hydrocarbons (DGH) announced this extension on its website, citing considerations for the holiday season that affects many countries at year-end.
OALP-X Round Details and Timeline
The 10th round of Open Acreage Licensing Policy (OALP-X) was launched in February during India Energy Week (IEW) 2025 in New Delhi. The bidding process has experienced multiple deadline adjustments throughout the year.
| Timeline | Original Date | Extended Dates |
|---|---|---|
| Initial Deadline | End of July 2025 | - |
| First Extension | - | October 31, 2025 |
| Second Extension | - | December 31, 2025 |
| Third Extension | - | February 18, 2026 |
The extension also applies to the fourth round of Discovered Small Field (DSF) bid round and the special coal-bed methane (CBM) round, all now scheduled to close on February 18, 2026.
Block Offerings and Geographic Coverage
OALP-X represents the largest acreage offering for oil and gas exploration to date. The round includes 25 blocks with a total area of approximately 191,986 square kilometres spread across 13 sedimentary basins.
| Block Type | Number of Blocks | Coverage |
|---|---|---|
| Onshore Blocks | 6 | Various basins |
| Shallow-water Tracts | 6 | Coastal areas |
| Deepwater Block | 1 | Offshore |
| Ultra-deepwater Blocks | 12 | Deep offshore |
| Total | 25 | 191,986 sq km |
Notably, the round includes four blocks with a combined area of 47,058 square kilometres in the Andaman basin. Oil Minister Hardeep Singh Puri has highlighted this basin's potential to hold significant oil and gas reserves, comparing it to exploration hotspot Guyana.
Historical Context and Previous Rounds
The current offering significantly exceeds previous rounds in terms of acreage. In the previous nine OALP rounds combined, a total area of 378,000 square kilometres was offered. The last bid round, OALP-IX, was the largest before the current round, featuring 28 blocks spread over 136,000 square kilometres.
OALP-IX Results and Participation
OALP-IX, conducted in September of the previous year, attracted four bidders and demonstrated varied participation patterns:
Key Participants and Results:
- ONGC: Won 11 blocks independently and three additional blocks in partnership with OIL
- Vedanta Ltd: Secured seven blocks after bidding for all 28 available blocks
- Oil India Ltd (OIL): Obtained six blocks
- Reliance-BP-ONGC Partnership: Won the shallow water block in Gujarat-Saurashtra basin
This round marked the first time Reliance Industries Ltd and BP Plc combined with ONGC for bidding, representing a significant partnership development in the sector.
Policy Framework and Strategic Objectives
The OALP bid rounds operate under the Hydrocarbon Exploration and Licensing Policy (HELP), introduced in 2016. This policy shifted from government-identified blocks to allowing explorers the freedom to identify prospective areas.
Key HELP Features:
- Reduced royalty rates and concessional rates for early commercial production
- No oil cess applicable
- Exploration rights retained over full contract life
- Marketing and pricing freedom for operators
- Five-point advantage for firms identifying specific areas
Blocks are awarded based on the highest revenue share offered from oil and gas production and the committed work programme. The government aims to boost domestic oil and gas production through increased exploration activities, potentially reducing India's USD 220.00 billion oil import bill.
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