India expands exploration efforts with fresh bidding wins

India is stepping up its upstream oil and gas game.

In the latest bidding round under the Open Acreage Licensing Policy (OALP), 28 new exploration blocks were up for grabs—covering over 136,000 km², according to Argus.

The results reflect a continued push by India to strengthen domestic production and reduce its heavy reliance on crude imports.

State-owned firms still lead the way

Out of the 28 blocks offered, India's state-run firms dominated, especially ONGC, which secured 15 blocks, including some through partnerships. 

This demonstrates how public sector players continue to steer India’s energy strategy, especially in complex offshore and shallow-water plays.

ONGC also entered a new partnership with other major players to secure a shallow-water block in the Saurashtra basin—a first for this kind of collaboration in the region.

Private sector participation is growing, gradually

While public-sector giants still dominate, private companies are increasingly entering the upstream space.

In this ninth bidding round, Vedanta—a major private-sector player—bid for all 28 blocks and successfully secured seven.

Meanwhile, Sun Petrochemicals submitted bids for seven blocks but did not win any.

Another significant development was the participation of Reliance Industries (RIL) in a consortium with ONGC and BP, marking their first joint win of a shallow-water block in the Saurashtra basin.

Although foreign involvement remains limited, these moves show that India’s exploration landscape is slowly diversifying, with private-sector interest gaining ground.

Policy moves aim to attract investment

To support these developments, India passed the Oilfields Regulation and Development Amendment Bill 2024. This reform seeks to:

• Simplify regulatory hurdles

• Offer clearer lease terms

• Encourage shared infrastructure use

• Boost investor confidence

Additionally, the windfall tax on domestic crude production was removed in December 2024, giving producers better financial breathing room.

Demand still outpaces local production

Despite growing upstream efforts, India still imports nearly 89% of its crude. In early 2024, crude imports rose slightly to 5.01 million b/d, while domestic production declined by over 1%. 

This imbalance keeps pressure on India to boost output and secure energy independence.

India may still rely on imports today—but its waters are becoming more active, offering new logistics and trading opportunities.

India expands exploration efforts with fresh bidding wins