Oil Discovery in Rajasthan

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Cairn Oil & Gas, a Vedanta group firm recently has announced an oil discovery in Rajasthan՚s Barmer district block that is not very far away from its prolific oilfield in the same desert. The Ministry of Petroleum and Natural Gas and Directorate General of Hydrocarbons (DGH) have been notified about the discovery by the company. The block was given to Cairn Oil & Gas under the Open Acreage Licensing Policy (OALP) .

Since 2011 India՚s crude oil and natural gas production have been falling consistently. Some of the main reasons for decline are Ageing sources, Need of intensive technology, Domination of state-owned companies, Climate change, Low Interest of foreign companies, etc. Operationalization delays, High cess, Limit on maximum production, etc. are the main reasons for less private participation.

Oil Discovery in Rajasthan


  • The Block RJ-ONHP-2017 - 1 located in Barmer՚s Chohtan and Gudamalani Tehsil covers 542 square kilometres of area.
  • The block was also among the 41 blocks of the companies that were awarded in the 2018 OALP-I round of bidding.
  • Vedanta owns 100 % participating interest in the block.
  • Under the Open Acreage Licensing Policy, the discovery is the third such discovery notified by the company.
  • The name given to the discovery is ‘Durga.’

Open Acreage Licensing Policy

  • The companies are permitted to mark and explore areas they want for gas and oil.
  • An expression of interest for any area to be explored throughout the year is to be submitted by the interested companies however the interests are accumulated only three times in a year post which the sought-after locations are auctioned off.
  • Over the years, the OALP has successfully helped in removing red-tapism and bringing a quantum jump in the Exploration and Production sector.

Hydrocarbon Exploration and Licensing Policy

The exploration blocs shall be awarded on a continuous basis through e-bidding in a transparent manner.

Important Features

  • Revenue sharing model
  • Unified license for hydrocarbons
  • Full marketing and pricing freedom for gas
  • Under OALP bid rounds, freedom to carve out acreages of choice

Directorate General of Hydrocarbons

  • It is a regulatory body that falls under the ambit of the Ministry of Petroleum and Natural Gas.
  • Under the administrative jurisdiction of the Ministry of Petroleum and Natural Gas, DGH was created in 1993 by the Government of India Resolution.
  • It was created to promote an effective management of natural gas and oil resources thereby considering the:
    • Safety
    • Environmental
    • Economic
    • Technological aspects of the industry

National Data Repository

  • It is a government-sponsored E&P data bank.
  • Data stored in NDR:
    • Seismic Data
    • Well & Log Data
    • Spatial Data
    • Other data such as
      • Drilling
      • Production
      • Geological
      • Gravity & Magnetic, etc.

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