Special OALP launched for deepwater oil and gas blocks with government funding up to 50% of well costs under Samudra Manthan scheme

Key facts

• The government is introducing a Special Open Acreage Licensing Policy (OALP) round for fast-track award of deepwater and ultra-deepwater exploration blocks under the Samudra Manthan National Offshore Exploration Scheme, with details to be announced by the Directorate General of Hydrocarbons (DGH).
• The government will bear up to 50% of eligible exploratory well drilling costs, capped at Rs 675 crore per well, whichever is lower.
• The Samudra Manthan scheme, approved by the Union Cabinet on July 31, 2026, has an outlay of Rs 84,084 crore, including Rs 43,200 crore for drilling 60 deepwater exploration wells, Rs 28,534 crore for offshore seismic data acquisition, Rs 10,000 crore for common offshore infrastructure and Rs 2,000 crore for oil and gas manufacturing and services zones.
• Under the Special OALP, a 21-day Expression of Interest window will open on the first day of every month, giving 12 bidding opportunities annually, each with its own concurrent evaluation and award process.
• Bids will be evaluated on the Committed Work Programme instead of revenue-share quotations, with 10 marks for the block originator and 10 marks for demonstrated deepwater or ultra-deepwater drilling experience.
• For Category-I deepwater and ultra-deepwater blocks, revenue sharing during the first five years of production applies only on windfall gain, and from the sixth year the applicable share will be the higher of 5% of revenue or the relevant windfall gain slab.
• Parent company guarantees will be waived for bidders meeting the standalone net-worth requirement, and a single revolving bid bond of USD 2 million valid across all Special OALP bids can be furnished via electronic bank guarantee or IRDAI-regulated Insurance Surety Bond.
• The government expects the programme to add over 600 million tonne of oil equivalent (MMTOE) to India's hydrocarbon reserves and reduce import dependence.