Deepsea oil exploration faces bidding delays; OALP-X, XI deadline extended to December 10

Repeated bidding delays for deepwater oil exploration rounds reflect persistent challenges in attracting capital to high-risk offshore projects. Prospective investors are currently evaluating a major state-backed exploration scheme designed to subsidize drilling costs. Find out how this fiscal support aims to unlock vast hydrocarbon reserves.

Indian government has extended the deadline for submitting bids for deepwater and ultra-deepwater oil and gas blocks under the 10th and 11th rounds of the Open Acreage Licensing Policy (OALP) by nearly a month to December 10, 2026.

The latest postponement is the seventh for OALP-X and the third for OALP-XI, as per PTI, highlighting the difficulties in attracting investment into India's offshore exploration sector, where projects involve significant technical and financial risks.

The Directorate General of Hydrocarbons (DGH), the upstream oil and gas regulator, has revised the bidding schedule for the remaining deepwater and ultra-deepwater acreage under both rounds. The agency, however, has not specified the reason for the extension.

Industry sources as reported by PTI said the additional time could allow prospective investors to assess the recently announced ₹84,084-crore Samudra Manthan National Offshore Exploration Scheme, whose operating guidelines were released on October 22.

The Central Sector scheme, to be implemented until FY31, seeks to accelerate exploration and production in India's Exclusive Economic Zone (EEZ) through strategic investments across the offshore exploration value chain.

The scheme provides government support of up to 50% of eligible deepwater exploration drilling costs, subject to a cap of ₹675 crore per well. The financial assistance is aimed at reducing the investment risks associated with exploring technically challenging offshore areas.

OALP-X has seen seven deadline extensions

Launched in February 2025, the 10th OALP round offered 25 blocks spanning approximately 1,82,589 sq km across 13 sedimentary basins. At the time, it was the largest licensing round by acreage.

The offering included six onshore blocks, six shallow-water blocks, one deepwater block and 12 ultra-deepwater blocks. Of the total, 19 blocks were offshore, with 13 deepwater and ultra-deepwater blocks covering around 1,24,327 sq km.

Bidding for onshore and shallow-water acreage closed on June 19, 2026. The deadline for the remaining offshore blocks, initially scheduled for July 2025, was extended multiple times before being moved to September 17 and subsequently November 15. It now stands at December 10.

The 11th OALP round was launched in March 2026, offering 21 blocks covering 80,234.49 sq km across 11 sedimentary basins.

The round comprises 12 onshore blocks, four shallow-water blocks, one deepwater block and four ultra-deepwater blocks. Nine offshore blocks together cover approximately 45,296 sq km.

While bidding for onshore and shallow-water acreage closed on June 19, the deadline for deepwater and ultra-deepwater blocks was first extended to September 17 and then November 15. The latest revision gives bidders until December 10.

Samudra Manthan scheme seeks to reduce exploration risks

The ₹84,084-crore Samudra Manthan scheme, approved by the Union Cabinet in July, will remain in force through FY31 and aims to unlock more than 600 million tonnes of additional oil-equivalent hydrocarbon resources.

Its components include ₹28,534 crore for offshore seismic data acquisition and processing, ₹43,200 crore for accelerated offshore exploration, including 60 deepwater exploration wells, ₹10,000 crore for common offshore infrastructure and ₹2,000 crore for oil and gas manufacturing and services zones.

The government will bear up to 50% of eligible drilling costs, capped at ₹675 crore per well, whichever is lower. According to the Petroleum Ministry, a single deepwater exploratory well can cost an estimated $125 million to $150 million.

India imports more than 88% of its crude oil requirements, making the development of domestic hydrocarbon resources an important part of its energy-security efforts.

Introduced in 2016 under the Hydrocarbon Exploration and Licensing Policy, the OALP framework allows companies to identify and express interest in exploration acreage rather than relying solely on blocks identified by the government.

The broader reform programme has also included a shift from production-sharing to revenue-sharing contracts, marketing and pricing freedom for produced hydrocarbons, changes to the Oilfields (Regulation and Development) Act and the opening up of previously restricted offshore areas for exploration.