Lok Sabha Question No. 1654 (UNSTARRED), answered on 2020-03-02
Subject: Import of Crude Oil
Ministry: PETROLEUM AND NATURAL GAS
Asked by: S. Venkatesan, Meenakashi Lekhi

## LOK SABHA UNSTARRED QUESTION NO.1654

## TO BE ANSWERED ON 2 nd  March, 2020

## Import of Crude Oil

## 1654.  SRI S. VENKATESAN: SHRIMATI MEENAKSHI LEKHI:

पेट्रोलियम और प्राक ृ लिक गैस मंत्री

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

- (a) whether  the  oil  consumption  has  fallen  the  most  in  the  past  three  years,  if  so,  the  details thereof;
- (b) the steps taken to increase oil consumption in the country;
- (c) the steps taken to increase oil exploration in the country;
- (d) the  details  regarding  deficit  in  oil  imports  and  exports  in  the  country  from  financial  year 2018 to 2020; and
- (e) the details and the price of crude oil imported during the last three years, country-wise?

## A N S W E R

पेट्रोलियम और प्राक ृ लिक गैस मंत्री ( श्री धमेंन् द्र प्रधान )

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

- (a) & (b) The total consumption of petroleum products for the last three years is as under:
- (c) Government  has  taken  several  transformative  policy  measures/initiatives  to  enhance exploration & production of oil and gas in the country, 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  PreNELP 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.
- (d) Export of crude oil is not permitted as per extant policy. In so far as import of crude oil is concerned, 17% of crude oil requirement is met through indigenous production and the balance 83% requirement is met through imports. The details of import of crude oil and import/export of petroleum products are given below:
- (e) The details and the price of crude oil imported during the last three years are as under:

| Financial Year                                                |   2016-17 |   2017-18 |   2018-19 |
|---------------------------------------------------------------|-----------|-----------|-----------|
| Consumption of Petroleum Products (in Thousand Metric Tonnes) |    194597 |    206166 |    213216 |

| Import/Export of crude oil and petroleum products           | Import/Export of crude oil and petroleum products           | Import/Export of crude oil and petroleum products           | Import/Export of crude oil and petroleum products           | Import/Export of crude oil and petroleum products           | Import/Export of crude oil and petroleum products           | Import/Export of crude oil and petroleum products           | Import/Export of crude oil and petroleum products           | Import/Export of crude oil and petroleum products           | Import/Export of crude oil and petroleum products           |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
|                                                             | 2017-18                                                     | 2017-18                                                     | 2017-18                                                     | 2018-19                                                     | 2018-19                                                     | 2018-19                                                     | 2019-20 (April-January) (P)                                 | 2019-20 (April-January) (P)                                 | 2019-20 (April-January) (P)                                 |
|                                                             | Quantity                                                    | Value                                                       | Value                                                       | Quantity                                                    | Value                                                       | Value                                                       | Quantity                                                    | Value                                                       | Value                                                       |
|                                                             | Million Tonne                                               | US$ Billion                                                 | ₹ Crore                                                     | Million Tonne                                               | US$ Billion                                                 | ₹ Crore                                                     | Million Tonne                                               | US$ Billion                                                 | ₹ Crore                                                     |
| Import of crude oil                                         | 220.4                                                       | 87.8                                                        | 566450                                                      | 226.5                                                       | 111.9                                                       | 783183                                                      | 188.4                                                       | 87.7                                                        | 617344                                                      |
| Import of petroleum products                                | 35.5                                                        | 13.6                                                        | 88374                                                       | 33.3                                                        | 16.3                                                        | 113665                                                      | 35.8                                                        | 15.0                                                        | 106191                                                      |
| Export of petroleum products                                | 66.8                                                        | 34.9                                                        | 225388                                                      | 61.1                                                        | 38.2                                                        | 267697                                                      | 54.7                                                        | 31.3                                                        | 221206                                                      |
| Source: Petroleum Planning &Analysis Cell, (P): Provisional | Source: Petroleum Planning &Analysis Cell, (P): Provisional | Source: Petroleum Planning &Analysis Cell, (P): Provisional | Source: Petroleum Planning &Analysis Cell, (P): Provisional | Source: Petroleum Planning &Analysis Cell, (P): Provisional | Source: Petroleum Planning &Analysis Cell, (P): Provisional | Source: Petroleum Planning &Analysis Cell, (P): Provisional | Source: Petroleum Planning &Analysis Cell, (P): Provisional | Source: Petroleum Planning &Analysis Cell, (P): Provisional | Source: Petroleum Planning &Analysis Cell, (P): Provisional |

| Years                                          |   2016-17 |   2017-18 |   2018-19 |
|------------------------------------------------|-----------|-----------|-----------|
| Oil Imports (in Million Metric Tonne)          |    213.93 |    220.43 |    226.5  |
| Aggregated Price of Crude Oil (US$ per barrel) |     47.56 |     56.43 |     69.88 |

* * * * * *