Lok Sabha Question No. 1720 (UNSTARRED), answered on 2020-03-02
Subject: Oil and Gas Production and Supply
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Mohanbhai Kalyanji Kundariya, Anil Firojiya

## Oil and Gas Production and Supply

## †1720. SHRI MOHANBHAI KALYANJI KUNDARIYA: SHRI ANIL FIROJIYA:

## पैट्रोल ियम व प्राक ृ तिक गैस मंत्री

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

- (a) whether it is a fact that all the energy requirement pressure is on liquid petroleum products and the country is not able to produce sufficient crude oil and natural gas for its energy requirement;

(b) if so, the details thereof;

- (c)  the  steps  taken/being  taken  by  the  Government  to  counter  the  challenges  of investors like clarification of the ambiguity of licence operating rules and to ensure that the Government is investor friendly; and
- (d) the details of steps taken by the Government to remove the obstacles related to oil and gas production and supply in the country?

## ANSWER

पेट्रोल ियम और प्राक ृ तिक गैस मंत्री ( श्री धमेन्द्र प्रधान )

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a)  &  (b) The  details  of  Petroleum-Oil-Lubricants  (POL)  production  from  domestic crude oil and its total domestic consumption in Million Metric Tonnes (MMT) during last three years, along with percentage self-sufficiency are given below: -

| Crude Oil                                                     | 2016-17   | 2017-18   | 2018-19   |
|---------------------------------------------------------------|-----------|-----------|-----------|
| Total POL production from indigenous crude oil and condensate | 35.6      | 35.2      | 34.5      |
| Total domestic consumption                                    | 194.6     | 206.2     | 213.2     |
| Self-sufficiency based on consumption of POL products         | 18.3%     | 17.1%     | 16.25%    |

The  details  of  domestic  natural  gas  production  and  its  consumption  in  Billion  Cubic Meters (BCM) for last three years are as under:

| Natural Gas                | 2016-17   | 2017-18   | 2018-19   |
|----------------------------|-----------|-----------|-----------|
| Total domestic consumption | 55.7      | 59.2      | 60.8      |
| Total domestic production  | 30.8      | 31.7      | 32.1      |
| Self-sufficiency           | 55.4%     | 53.6%     | 52.7%     |

(c)  &  (d) Government has taken several transformative policy measures/initiatives  to remove the obstacles related to oil and gas production and counter the challenges of investors which include:

- i. Policy  for  Relaxations,  Extensions  and  Clarifications  under  Production  Sharing Contract (PSC) regime for early monetization of hydrocarbon discoveries, 2014
- ii. Discovered Small Field Policy, 2015
- iii. Hydrocarbon Exploration and Licensing Policy, 2016
- iv. Policy for Extension of Production Sharing Contracts, 2016 and 2017
- v. Policy for early monetization of Coal Bed Methane, 2017
- vi. Setting up of National Data Repository, 2017
- vii. Appraisal of Unappraised areas in Sedimentary Basins.
- viii. Re-assessment of Hydrocarbon Resources.
- ix. Policy  framework  to  streamline  the  working  of  Production  Sharing  Contracts  in Pre-NELP and NELP Blocks, 2018
- x. Policy to Promote and Incentivize Enhanced Recovery Methods for Oil and Gas, 2018
- xi. Policy framework for exploration and exploitation of Unconventional Hydrocarbons under existing Production Sharing Contracts, Coal Bed Methane contracts and Nomination fields, 2018.
- xii. Grant  of  Marketing  including  pricing  freedom,  on  natural  gas  production  from High Pressure- High Temperature (HP-HT) reservoirs and deepwater and ultra deepwater areas (with ceiling), gas produced from CBM blocks, blocks awarded under  Hydrocarbon  Exploration  and  Licensing  Policy  (HELP)  and  Discovered Small Fields (DSF) Policy, commercial gas produced from North-Eastern Region (NER) on or after 1 st July,  2018  and  also  in  those  new  gas  discoveries  whose Field  Development  Plan  (FDP)  has  been  approved  after  February  2019.  To incentivize additional gas production from Administered Price Mechanism (APM) fields, reduction in royalty by 10% of the applicable royalty has also been granted on the additional production over and above business-as-usual scenario.
- xiii. In addition, Government in February, 2019 approved major reforms in exploration and  licensing  policy  to  enhance  exploration  activities,  attract  domestic  and foreign  investment  in  unexplored/unallocated  areas  of  sedimentary  basins  and accelerate  domestic  production  of  oil  and  gas  from  existing  fields.  The  policy reforms inter  alia aim  to  boost  exploration  activities  with  greater  weightage  to work  programme  and  bidding  of  exploration  blocks  under  Category  II  and  III sedimentary basins without any production or revenue sharing to Government. Further, reforms envisage simplified fiscal and contractual terms, early monetization of discoveries  by  extending fiscal  incentives  and  incentivizing gas production  including  marketing  and  pricing  freedom.  The  policy  also  provides more functional freedom to National Oil Companies for collaboration and private sector  participation  for  production  enhancement  methods  in  nomination  fields. Streamlining approval processes and promoting ease of doing business including electronic  single  window  mechanism  is  also  an  important  aspect  of  policy reforms.

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