India’s exploration and production (E&P) sector offers investment opportunity worth $100 billion by 2030, Petroleum and Natural Gas minister Hardeep Singh Puri said at an event on July 11.
Speaking at Urja Varta 2024, Puri said large part of India’s exploration and production potential still lies untapped within the 26 sedimentary basins in the country. The minister added that he finds issues pertaining to exploration and production the biggest challenge currently.
“Despite the abundant geological resources available to us, our efforts in the past have been far short of what needs to be done (in the E&P sector),” said Puri.
The minister also highlighted that, as of now, 10 percent of the country’s sedimentary blocks are under exploration. Following the completion of the 10th Open Acreage Licensing Programme (OALP) round, 16 percent would come under exploration, Puri said.
Puri said that the government is committed to supporting E&P activities in the country and would not tolerate inordinate delays by any organisation. He said the government is spending heavily on promoting scientific data-driven exploration. “An investment of Rs. 7,500 crore is going into the acquisition of new seismic data, including that of the EEZ, financing stratigraphic wells, and acquiring aerial survey data for difficult terrains,” he said.
Addressing energy prices, Puri said the government was able to control oil prices because of neutral policies. “There was a global turmoil. We could have followed what the West was advising us to do and not source oil from a particular country and then oil prices would have shot up,” the minister said.
Following the war in Ukraine, India has ramped up sourcing of crude oil from Russia at discounted prices. The discounts, though, have declined in the recent months. India’s oil companies are now looking at long-term crude oil deals with Russia.
Puri also announced the formation of a Joint Working Group (JWG), comprising representatives from private E&P operators, the national oil companies, MoPNG, and Directorate General of Hydrocarbons (DGH).
The group would examine issues relating to the ease of doing business in E&P, adequacy of policies and procedures, and the need for their revision. Puri said the group would submit its recommendations within eight weeks.
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