India opens deepwater oil and gas bids with 50% cost support
In short
India has opened a special bidding round for deepwater and ultra-deepwater oil and gas blocks. It will offer monthly bidding windows and may pay up to 50% of eligible exploratory well costs under its Rs 84,084-crore Samudra Manthan programme.
This could make offshore drilling cheaper and less risky for investors. It is meant to speed up exploration in India's frontier basins.
What the reporting says
India opened a special licensing round for deepwater and ultra-deepwater oil and gas blocks under the Open Acreage Licensing Policy, offering monthly bidding windows and relaxed fiscal terms. The government said it may cover up to 50% of eligible exploratory well costs under its Rs 84,084-crore Samudra Manthan offshore exploration programme. The move is meant to speed up offshore exploration by lowering entry barriers and sharing drilling risk and costs.
Why it matters
India opened a special Open Acreage Licensing Policy round for deepwater and ultra-deepwater oil and gas blocks, with monthly bidding windows and relaxed fiscal terms. Under the Samudra Manthan offshore exploration programme, the government said it may fund up to 50% of eligible exploratory well costs. The policy is aimed at companies considering offshore drilling and is meant to reduce the cost and risk of exploration.