In a move that will enable the oil firms to choose the blocks they want to explore the Indian government is finally making a move towards implementing Open Acreage Licensing Policy (OALP). The move that comes after eight rounds of auction will free the oil firms from waiting for the government to put oils blocks on offer before choosing to explore them.

Speaking on the matter Oil Minister Murli Deora said, "Our intention is to move to the OALP regime as soon as possible". The minister was speaking after signing the Production Sharing Contract for blocks awarded in the eighth round of auction. Adding to the matter he said, "Under this policy, companies can suggest any block for offer at any time, without waiting for the announcement of the bids under New Exploration Licensing Policy (NELP)".

As per the OLAP oil companies will be free to choose any oil and gas area or block of their choice for exploration and subsequently approach the Government for award of the same. Following this the government will launch an offer for that particular block. Adding on the matter Mr. Deora said, "The block will be awarded to the party giving the best bid". However a last round of auction under NELP (NELP-IX) is expected to be carried out by the end of the ongoing year before OALP is implemented.

Commenting on the matter Mr. Deora said, "It would be our endeavour to launch NELP-IX round in the third quarter of 2010". Meanwhile the establishment of the National Data Repository (NDR) will be the primary pre-requisite for OALP to become operational. Commenting on the matter Mr. Jitin Prasada, Minister of State for Petroleum and Natural Gas said, "Directorate General of Hydrocarbon (DGH) is in the process of setting up the NDR, which will archive all E&P data under one roof".

Adding further to the matter he said, "Certain regulations regarding ownership of data. Sharing of information in the public domain etc will be required to be formulated while setting up the NDR. These issues are being looked into". Meanwhile DGH Director General Mr. S K Srivastava has pointed out that said that the 36 blocks that were bid in the NELP-VIII round that concluded last year has been successful in attracting an investment of USD 1.34 billion in oil and gas hunt. Adding on the matter he said, "This was better than USD 1.2 billion investment committed in the previous round (NELP-VII)".