India Unveils 50 New Hydrocarbon Blocks to Boost Energy Security

• India offers 50 new oil, gas and CBM exploration blocks nationwide.
• OALP, DSF-IV and CBM rounds provide incentives and flexible terms.
• New regulatory reforms aim to boost investment and energy security.

India has achieved a significant milestone in its energy sector by providing 50 new exploration and production (E&P) blocks for oil, gas, and coal bed methane (CBM) assets, indicating a renewed effort to tap into domestic hydrocarbon resources and enhance energy security, stated Union Minister for Petroleum and Natural Gas Hardeep Singh Puri.

In a social media update on X, Minister Puri described the initiative as a "transformative milestone" under Prime Minister Narendra Modi's leadership, highlighting India's openness to both global and domestic investors.

"We are offering 50 new E&P blocks across Open Acreage Licensing Policy (OALP): 25 blocks, Discovered Small Field (DSF-IV): 55 fields across 9 contract areas/blocks. Special CBM bid rounds 2025 and 2026: 3 blocks (2025) & 13 blocks (2026)," the petroleum minister said in his post.

According to the details provided by him, the Open Acreage Licensing Policy offers 25 blocks that span approximately 1.83 lakh square kilometres, which include six onland blocks, six shallow water blocks, one deepwater block, and 12 ultra-deepwater blocks.

Simultaneously, the Discovered Small Field (DSF) Bid Round-IV features 55 discoveries distributed over nine contract areas, designed to hasten the transition from discovery to production. For DSF Bid Round-IV, extra incentives consist of no royalty for the initial seven years in deepwater regions, complete marketing freedom on an arm's length basis, and looser eligibility criteria where prior experience in oil and gas isn't required.

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The CBM rounds also offer comparable flexibility and incentives, featuring complete pricing freedom, no overlap with coal blocks or mines, and in the 2026 round, the government will reimburse costs for required core-hole drilling.

The Minister additionally emphasized that India has established a cohesive regulatory structure facilitated by the Oilfields (Regulation and Development) Amendment Act, 2025, which separates petroleum activities from mining, along with the PNG Rules 2025.

This encompassed the Revenue Sharing Contract model—simplicity in business operations; a unified license for both conventional and unconventional hydrocarbons; exploration permitted for the entire contract period; tiered decreasing royalty rates; and stabilization against legal changes.