Lok Sabha Question No. 1884 (UNSTARRED), answered on 2016-11-28
Subject: Domestic Oil Production
Ministry: PETROLEUM AND NATURAL GAS
Asked by: K. ASHOK KUMAR, ASHWINI KUMAR CHOUBEY, KUNWAR PUSHPENDRA SINGH CHANDEL, ELUMALAI VELLAIGOUNDER

## LOK SABHA UNSTARRED QUESTION NO. 1884 TO BE ANSWERED ON 28 th  NOVEMBER, 2016

## DOMESTIC OIL PRODUCTION

1884: SHRI K. ASHOK KUMAR:

SHRI ASHWINI KUMAR CHOUBEY:

SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

SHRI V. ELUMALAI:

## पेट्रोलियम एवं प्राक ृ तिक गैस मंत्री

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

- (a) Whether the Government has set a target of reducing crude oil imports by 10 percent of the total requirement by 2022 and if so, the details thereof along with steps taken to increase domestic resources in order to become self-reliant in the production of crude oil and natural gas;
- (b) Whether the consumption/projected demand of crude oil and natural gas is likely to grow three  folds  by  2040  and  if  so,  the  details  thereof  along  with  the  concrete  steps  taken  to diversify our sources and technology to meet the demand in future;
- (c)    Whether  the  Government  proposes  to  emphasise  on  exploration  and  tapping  explored fields which have low production and if so, the details thereof; and
- (d)  the concrete steps taken/being taken by the Government to settle the contractual disputes between the Government and the oil companies?

## ANSWER

## पेट्रोलियम एवं प्राक ृ तिक गैस मंत्रािय में राज्य मंत्री ( स्विंत्र प्रभार ) ( धमेन्द्र प्रधान )

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE  MINISTRY OF PETROLEUM & NATURAL GAS

(SHRI DHARMENDRA PRADHAN):

- (a) During the Urja Sangam held on 27 th March, 2015, Hon'ble Prime Minister assigned the target  of  reducing  import  dependency  in  energy  by  10%  by  2021-22.  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.
- (b) As per International Energy Agency's (IEA) World Energy Outlook 2015, the projected demand of oil and gas in India would be:

| By 2040                   | (million tonnes of oil equivalent)   | (million tonnes of oil equivalent)   |
|---------------------------|--------------------------------------|--------------------------------------|
|                           | Oil                                  | Gas                                  |
| Current Policies Scenario | 505                                  | 143                                  |
| 450 Scenario              | 337                                  | 179                                  |
| New Policies Scenario     | 458                                  | 149                                  |

Government has taken several steps to enhance exploration & production of oil and gas in the country such as:

- I. Easing out rigidities in the existing Production Sharing Contracts (PSCs)
- II. Transparent and clear policy for grant of extension under the PSC regime
- III. Grant of Marketing Freedom for gas produced from difficult areas
- IV. Discovered  Small  Field  Policy  and  Hydrocarbon  Exploration  and  Licensing  Policy (HELP)
- V. Setting up of National Data Repository
- VI. Appraisal of Unappraised Areas in various sedimentary basins etc.

These initiatives would help in increasing the production of oil and gas in the country.

- (c)  Yes,  Government  has  taken  up  focused  monitoring  of  various  fields  under  PSC  and nomination regimes for enhancing production of oil and gas in the country.
- (d)  Government  has  taken  several    steps  for  resolving  disputes  and  ensuring  policy  based administration.  The  policy  framework  for  Relaxations,  Extensions  and  clarifications  at  the Development and Production stage under PSC regime for early Monetization of hydrocarbon Discoveries, Policy on Testing Requirements, Policy for Extension of PSCs have helped in resolution of several disputes and have taken the blocks forward

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