Lok Sabha Question No. 377 (STARRED), answered on 2016-12-12
Subject: Hydrocarbon Exploration
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shrirang Appa Barne, SHIVAJI ADHALRAO PATIL

## LOK SABHA STARRED QUESTION NO.377

## TO BE ANSWERED ON 12 th  December, 2016

## HYDROCARBON EXPLORATION

## *377.  SHRI SHRIRANG APPA BARNE : SHRI ADHALRAO PATIL SHIVAJIRAO:

पेट्रोलियम और प्राक ृ लिक गैस मंत्री

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

- (a) whether the Government proposes to minimise the gestation period for hydrocarbon exploration and if so, the details thereof;
- (b) whether the Government proposes to bring in new technologies to fasten the process from discovery to production and if so, the details thereof along with the benefits likely to be accrued;
- (c) whether the Government proposes to make energy security one of its primary focus area in order to achieve fast and sustainable long term development; and
- (d) if so, the details thereof along with the steps taken/being taken in this regard?

## ANSWER

पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री ( प्राार रन्त्िवत्र ( ) प्रााप्र ामेवध ीी )

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

- (a) to (d) A statement is laid on the table of the house.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF THE LOK SABHA STARRED  QUESTION  NO.  377  BY  SHRI  SHRIRANG  APPA  BARNE  AND  SHRI ADHALRAO PATIL SHIVAJIRAO TO BE ANSWERED ON 12.12.2016 REGARDING HYDROCARBON EXPLORATION

- a):   Government of India has launched a new exploration and licensing regime to boost oil and gas exploration in the country and to reduce gestation period for exploration. The salient features  of  new  Hydrocarbon  Exploration  Licensing  Policy  (HELP)  can  be  brought  out  as under:
-  Single license for conventional and non-conventional hydrocarbons
-  Open Acreage Licensing Policy
-  Revenue Sharing Contract
-  Graded royalty rates for offshore area
-  The contractor will  be  free  to  sell  the  crude  oil  exclusively  in  domestic  market  through transparent bidding process on arms length basis.
-  The contractor will have freedom for pricing and marketing of gas produced from these blocks on arms length basis.
-  There is no levy of Cess on crude oil.
- b)  Traditionally  oil  and  gas  wells  are  vertically  drilled.  Technological  advancements have  allowed  operators  to  save  time,  reduce  operational  costs,  and  lessen  their environmental impact. New drilling technologies include the following techniques:
-  Horizontal Drilling
-  Multilateral Drilling
-  Extended Reach Drilling
-  Complex Path Drilling
- (c) and (d)  In order to achieve fast and sustainable long-term development, energy security  is  one  of  the  prime  focus  area  of  the  Government.    In  the  year  2015  'Urja Sangam' was organized at New Delhi. The aim of this global hydrocarbon meet was to showcase  India's  potential  in  the  hydrocarbon  sector  to  create  an  investor-friendly atmosphere, besides positioning India's thought leadership by creating a new 'Energy Security' Platform.

Based  on  discussions,  a  committee  was  constituted  for  'Preparing  a  roadmap  to reduce the dependency on import in energy by 10% by 2021-22'. The Committee has submitted  its  report  which  envisages  a  five  pronged  strategy  (Increasing  domestic production, promote bio fuels and renewable, promote energy efficiency and conservation, improvement in refining processes and demand substitution) to achieve the target. The report has been accepted by the Government.

The Government is ensuring energy security by:-

-  lowering the requirement of energy
-  substituting existing fuels with alternatives
-  expanding the domestic energy resource base through unconventional sources like shale gas/oil and gas hydrates
-  maintaining strategic reserve oil imports
-  acquiring energy assets abroad

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