Explanation:

OALP gives an option to a company to select the exploration blocks on its own, without waiting for the formal bid round from the Government.

Under OALP, a bidder intending to explore hydrocarbons may apply to the Government seeking exploration of any new block which was not already covered by exploration.

The Government will examine the interest and if it is suitable for award, then the govt will call for competitive bids after obtaining necessary environmental and other clearances.

OALP was introduced as part of the new fiscal regime in exploration sector called Hydrocarbon Exploration and Licensing Policy (HELP).

So that, it will enable a faster survey and coverage of the available geographical area which has potential for oil and gas discovery.

Successful implementation of OALP requires building of National Data Repository on geo-scientific data.