Lok Sabha Question No. 1220 (UNSTARRED), answered on 2017-07-24
Subject: Open Acreage Licensing Policy
Ministry: PETROLEUM AND NATURAL GAS
Asked by: ANANDRAO  ADSUL, VINAYAK BHAURAO RAUT, PRITAM GOPINATH MUNDE, POONAM  MAHAJAN, SANTOSH AHLAWAT, DARSHANA VIKRAM JARDOSH, M. UDHAYAKUMAR, PREM SINGH CHANDUMAJRA, SHIVAJI ADHALRAO PATIL, DHARMENDRA YADAV, SHRIKANT EKNATH SHINDE, FEROZE VARUN GANDHI, Shrirang Appa Barne, K. MARAGATHAM

## LOK SABHA UNSTARRED QUESTION NO.1220 TO BE ANSWERED ON 24 th  JULY, 2017

## OPEN ACREAGE LICENSING POLICY

## 1220.   SHRI ANANDRAO ADSUL:

SHRI VINAYAK BHAURAO RAUT:

DR. PRITAM GOPINATH MUNDE:

SHRIMATI POONAM MAHAJAN:

SHRIMATI SANTOSH AHLAWAT:

SHRIMATI DARSHANA VIKRAM JARDOSH:

ADV. M. UDHAYAKUMAR:

PROF. PREM SINGH CHANDUMAJRA:

SHRI ADHALRAO PATIL SHIVAJIRAO:

SHRI DHARMENDRA YADAV:

DR. SHRIKANT EKNATH SHINDE:

SHRI FEROZE VARUN GANDHI:

SHRI SHRIRANG APPA BARNE:

SHRIMATI K. MARAGATHAM:

## पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

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

- (a)  the  manner  and  extent  to  which  the  launch  of  National  Data  Repository  and  Open Acreage Licensing Policy under Hydrocarbon Exploration and Licensing Policy are likely to help in reviving the country's journey towards achieving energy security to reduce the import dependence by 10 per cent by 2022 and oil and gas exploration a big push;
- (b)  whether India's oil and gas consumption growth is fastest among all major economies and we are likely to become the most oil consuming country in the world by 2035 and if so, the details thereof along  with initiatives taken/target set to  reduce  crude  oil import dependence by 2022 and to make the country self-reliant in the production of oil and gas;
- (c)   the share of import of crude oil and natural gas and that of the domestic production in total annual consumption in the country during the said period, value-wise; (d)      the  details  of  domestic  production  of  oil  and  natural  gas  produced  by  public/private sector companies in the country during the last three years and the current year along with reasons  for  decline  in  the  production  of  public  sector  undertaking  and  steps  taken  to increase the domestic production of oil and gas and develop probable crude oil and natural resources  in  the  country  along  with  any  consultation  with  State  Governments  including
- Gujarat to identify such places, State/UT/company/value-wise; and
- (e)        whether  it  is  a  fact  that  52  per  cent  of  the  country's  sedimentary  basins  are  still unappraised hampering our exploration and production efforts and if so, the details and the reasons therefor along with the concrete steps taken in this regard?

## ANSWER

## पेट्रोल ियम और प्राक ृ तिक 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):      E&P  operations  in  India  have  generated  voluminous  data  in  terms  of  geo-scientific surveys, exploratory and development drilling and well data along with other type of data. National  Data  Repository  (NDR)  has  been  setup  at  DGH  to  make  the  entire  E&P  data available for commercial exploitation, research & development and academic purpose. With the  availability  of  data  on  National  Data  Repository  (NDR),  the  contactor  can  have  the access to data & can make his own assessment about the prospectively of the area and carve out hydrocarbon block themselves.

Further, Under Open Acreage Licensing Policy(OALP), which is a part of HELP, contractor has the access to data round the year for assessment enabling them to propose area of their interest  for  bidding  besides  holding  of    bidding  event  at  regular  intervals  thereby  bringing maximum  area  under  exploration  consequently  in  achieving    lower  import  dependency target.

(b):   As per BP Statistical Review of World Energy, 2017 during the last 5 years, the growth of  India  in  oil  and  gas  consumption  is  maximum  among  the  six  major  economies  of  the world. International Energy Agency's World Energy Outlook 2016, has ranked India as third biggest energy consumer after United State of America and China in terms of the demand of oil in the 'New Policy Scenario' in 2035.

For reducing crude oil import dependence by 2022, a five pronged strategy as mentioned under has been formulated:

- i. Increasing domestic production,
- ii. Promoting bio fuels and renewable resources of energy,
- iii. Promoting energy efficiency and conservation,
- iv. Improvement in refining processes
- v. Demand substitution
6. (c) & (d):  The details of domestic production by public/Pvt. JV companies, import and total consumption of crude oil and natural gas during last three years are at Annexure.

Natural  decline  and  operational  difficulties  i.e.  planned  shutdown  for  repair,  watered  out prematurely, closer of wells etc. are the reasons for decline in production.

Government  has  taken  various  steps  to  increase  exploration  and  production  to  ensure adequate supply/availability of oil and gas in the country. The steps are:

- i. Appraisal  of  un-appraised  Areas  in  various  sedimentary  basins  etc  under National  Seismic  Program  and  Multi-client  Geo-scientific  Surveys/activities  in order to enable systematic exploration in these areas
- ii. Re-Assessment of Hydrocarbon Resources of the country
- iii. Implementation  of  Hydrocarbon  Exploration  Licensing  Policy  (HELP)  and  Open Acreage Licensing  (OAL)
- iv. Assimilation  and  availability    of  Geo-scientific  data    through  National  data repository (NDR)
- v. Recycling of relinquished areas Early Monetization of Discovered Fields including small & Marginal fields.
- vi. Extension of Existing PSCs
- vii. Unconventional hydrocarbon resource development
- viii. Grant of Marketing Freedom for gas produced from difficult areas

(e):   52  per  cent  of the country's sedimentary basins are still unappraised. Government of India  has  started  the  National  Seismic  Programme  (NSP)  which  aims  to  undertake  an appraisal of sedimentary basins across India, especially where no/scanty data is available in order to have  a better understanding of the hydrocarbon  prospectivity. Under  this programme Oil & Natural Gas Corporation (ONGC) Limited has been entrusted to carry out 40835 LKM of  2D  seismic data acquisition, processing & interpretation (API) in 22 onland Indian  Sedimentary basins in 18 States and Union Territories. Oil India Limited (OIL)  has been  entrusted  to  carry  out 7408  LKM of  2D  seismic  data  acquisition,  processing  & interpretation (API) in the North-Eastern States.

**********

## Annexure

## Annexure to be referred in reply of Lok Sabha Unstarred Question No. 1220 to be answered on 24.07.2017

- A.  Details of Crude oil and Natural gas in respect of Production, Imports and Consumption:

| Years                 | Crude Oil (in TMT)   | Crude Oil (in TMT)   | Crude Oil (in TMT)   | Natural Gas (in MMSCM)   | Natural Gas (in MMSCM)   | Natural Gas (in MMSCM)   |
|-----------------------|----------------------|----------------------|----------------------|--------------------------|--------------------------|--------------------------|
|                       | Production           | Import               | Consumption          | Production               | Import(LNG)              | Consumption              |
| 2014-15               | 37461                | 189435               | 223242               | 33657                    | 18657                    | 46955                    |
| 2015-16               | 36942                | 202850               | 232865               | 32249                    | 21835                    | 47849                    |
| 2016- 17(P)           | 36009                | 213932               | 245362               | 31897                    | 24867                    | 50828                    |
| 2017-18 (Apr-May) (P) | 6038                 | 36030                | 40841                | 5303                     | 4129                     | 8221                     |

Note: Consumption of Natural gas includes LNG

- B:  Details of Year-wise Import of Crude oil & Natural Gas in quantity and value is as under:
- C.   Details of Company-wise Oil and Gas Production:

| Year                  | Imports of Crude Oil   | Imports of Crude Oil   | Imports of Crude Oil   | Imports of LNG   | Imports of LNG   | Imports of LNG   |
|-----------------------|------------------------|------------------------|------------------------|------------------|------------------|------------------|
|                       | In TMT                 | Rs. Crore              | In Million USD         | InMMSCM          | Rs. Crore        | In Million USD   |
| 2014-15               | 189435                 | 687416                 | 112744                 | 18657            | 57384            | 9397             |
| 2015-16               | 202850                 | 416579                 | 63972                  | 21835            | 45601            | 6985             |
| 2016-17(P)            | 213932                 | 470589                 | 70217                  | 24867            | 40806            | 6088             |
| 2017-18 (Apr-May) (P) | 36030                  | 84093                  | 13008                  | 4129             | 6867             | 1062             |

| Year                  | Production of Crude Oil   | Production of Crude Oil   | Production of Crude Oil   | Production of Crude Oil   | Production of Natural Gas   | Production of Natural Gas   | Production of Natural Gas   | Production of Natural Gas   |
|-----------------------|---------------------------|---------------------------|---------------------------|---------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|
|                       | ONGC                      | OIL                       | Pvt./JVs                  | Total                     | ONGC                        | OIL                         | Pvt./JVs                    | Total                       |
| 2014-15               | 22264                     | 3412                      | 11785                     | 37461                     | 22023                       | 2722                        | 8912                        | 33657                       |
| 2015-16               | 22360                     | 3226                      | 11356                     | 36942                     | 21177                       | 2838                        | 8235                        | 32249                       |
| 2016- 17(P)           | 22218                     | 3258                      | 10533                     | 36009                     | 22088                       | 2937                        | 6872                        | 31897                       |
| 2017-18 (Apr-May) (P) | 3781                      | 561                       | 1695                      | 6038                      | 3754                        | 486                         | 1062                        | 5303                        |

P: Provisional