Lok Sabha Question No. 3189 (UNSTARRED), answered on 2016-12-05
Subject: Target for Crude Oil Production
Ministry: PETROLEUM AND NATURAL GAS
Asked by: RAMA DEVI, PR. SENTHILNATHAN, LAXMAN GILUWA, P.R. SUNDARAM

## GOVERNMENT OF INDIA MINISTRY OF PETROLEUM AND NATURAL GAS

## LOK SABHA UNSTARRED QUESTION NO. 3189 TO BE ANSWERED ON 5 th  December, 2016

## Target for Crude Oil Production

†3189. SHRIMATI RAMA DEVI: SHRI PR. SENTHIL NATHAN: SHRI LAXMAN GILUWA: SHRI P.R. SUNDARAM:

पैट्रोलियम व प्राक ृ लिक गैस मंत्री

## Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether the Government has fixed any upper target to produce crude oil, natural gas  and  other  petroleum  products  to  avoid  foreign  exchange  losses  incurred  in importing such petroleum products;
- (b) if so, the details thereof along with the steps taken to increase the production and remove the mismatch in demand and supply of such petroleum products in future and achievement made by the Government in this regard, product-wise;
- (c) whether there is any restriction for India to facilitate import of crude Oil, Gas and Petroleum products and if so, the details thereof;
- (d)  the  concrete  steps  taken/being  taken  by  the  Government  to  augment  the production of crude oil and natural gas from existing oil and gas fields; and
- (e)  the  other  measures  taken  by  the  Government  to  make  the  leasing  out  of potential/unexplored/discovered oil and gas field/well in the country to private/foreign companies to achieve the desired domestic production level?

## ANSWER

पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री (स्विन्त्त्र प्रभार) (श्री धमेन्त्र प्रधान)

## MINISTER OF STATE (I/C) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARAMENDRA PRADHAN)

- (a) to (d). Ministry of Petroleum & Natural Gas for each financial year, sign MoU (Memorandum of Understanding) with the Oil & Gas CPSEs (Central Public Sector Enterprises). Under this agreement, the CPSEs undertake to achieve the targets set in the agreement at the beginning of the year.

Government  of  India  has  taken  several  policy  initiatives  as  well  as  administrative measures to enhance production of oil and gas in the country for meeting domestic demand. The policy initiatives can be mentioned as:

- i. Policy for Relaxations, Extensions and clarifications under Production Sharing Contract (PSC) regime for early monetization of hydrocarbon Discoveries.
- ii. Policy on Testing Requirements.
- iii. Discovered Small Field Policy.
- iv. Policy for marketing freedom for gas production from difficult areas.
- v. Policy for exploration in Mining Lease Area.
- vi. Hydrocarbon Exploration and Licensing Policy.
- vii. Policy for Extension of Production Sharing Contracts.
- viii. Shale Gas Policy etc.

Some of the administrative steps taken by the Government are:

- i. Setting up of National Data Repository.
- ii. Appraisal of Unappraised area in Sedimentary Basin.
- iii. Streamlining  of  functioning  of  Management  Committee  for  timely  approval  of Work Program and Budget in PSC regime.
- iv. Re-assessment of Hydrocarbon Resources.

The Government has decided that Oil PSUs may formulate policies for import of crude oil in their best commercial interest and in accordance with the extant guidelines of the Central Vigilance Commission etc. Therefore Public Sector Oil Marketing Companies (OMCs) procure crude oil as per Crude Import Policy. Crude Oil is procured on term and  spot  basis  from  NOCs  and  other  registered  parties  with  OMCs.  There  is  no restriction on import of Liquefied Natural Gas (LNG).

(e). Under  Pre-New  Exploration  Licensing  Policy  (Pre-NELP)/NELP,  exploration blocks were awarded through Competitive Bidding Process for carrying out Exploration  &  Production  activities.  In  various  rounds  of  biddings  held  under  PreNELP/NELP, Private/JV companies had also participated  alongwith  the  National Oil Companies (NOCs).

Based  on  the  experiences  of  implementation  of  NELP  and  to  simplify  contractual regimes,  Government  has  recently  announced  'Hydrocarbon  Exploration  Licensing Policy (HELP)' with the objective to enhance domestic oil and gas production.

In addition to above, to enhance oil & gas production in the country and inviting private investment,  a policy named as 'Discovered Small Field Policy' has been approved by the government, envisaging auctioning of 67 small/marginal fields of ONGC and OIL through International Competitive Bidding.

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