State-owned ONGC will explore oil and natural gas in an area of 2,118.83 sq km at the Bikaner district of Rajasthan, for which the company has been allocated a block for three years.
Rajasthan Additional Chief Secretary (Mines and Petroleum) Subodh Agarwal said licence has been issued on the recommendation of the Union petroleum and natural gas ministry.
In a release, he added that Oil and Natural Gas Corporation (ONGC) will invest about Rs 74 crore in a phase manner on the discovery of crude oil and natural gas in this area.
It will provide direct employment to 150-200 people and indirect employment to 500-700 people, he said.
Agarwal also said the state will get revenue at the rate of 12.5 per cent on the production of crude oil and 10 per cent on the production of natural gas.
He said ONGC is already exploring and mining in the Jaisalmer basin.
Agarwal held a review meeting with ONGC officials at secretariat here and discussed the matters related with exploration and production on Thursday.
Officials from ONGC and the state government were present at the meeting.