Lok Sabha Question No. 4329 (UNSTARRED), answered on 2019-01-07
Subject: DSF Oil and Gas Fields
Ministry: PETROLEUM AND NATURAL GAS
Asked by: ADVOCATE NARENDRA KESHAV SAWAIKAR, PREM SINGH CHANDUMAJRA, ASADUDDIN OWAISI, VEENA DEVI

## LOK SABHA UNSTARRED QUESTION NO. 4329 TO BE ANSWERED ON 7 th  January, 2019 DSF Oil and Gas Fields

## 4329.  ADV. NARENDRA KESHAV SAWAIKAR:

PROF. PREM SINGH CHANDUMAJRA:

SHRIMATI VEENA DEVI:

SHRI ASADUDDIN OWAISI:

पेट्रोलियम एवं प्राक ृ लिक गैस मंत्री

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

- (a)  whether  the  Government  is  expecting  a  revenue  of  Rs.  45000  crore  as  royalty, taxes and profit from 25 DSF oil and gas fields and if so, the details thereof; (b) whether the Government is expecting a revenue of Rs. 9000 crore from fields bid out in DSF I with first oil expected in 2020 and if so, the details thereof; (c)  whether the Government has deferred the auction of 25 oil and gas fields by one month  that  hold  resources  worth  an  estimated  Rs.  1  lakh  crore  because  resources would translate into higher revenue for the Government by way of increased royalty paid on production, taxes and profit on petroleum and if so, the details thereof; (d)  whether  ONGC  will  focus  on  big  fields  or  focus  on  small  and  marginal  fields  to minimise  their  expenditure  and  if  so,  the  details  thereof  along  with  any  consultations held with ONGC in this regard; (e) the details of new gas reserve identified by public/private sector oil companies along with total quantity of gas reserves identified upto March, 2018; (f)  whether commercial production of the gas has not been started from these reserves so far and if so, the details thereof and the reasons therefor, State/company/block-wise; and (g) whether there is any proposal to shift the country to a gas based economy and if so, the details thereof along with states that have objected to explore gas in their States as
- it adversely affects fertility of land?

## Answer

## पेट्रोलियम एवं प्राक ृ लिक गैस मंत्रािय में मंत्री

## ( श्री धमेंद्र प्रधान )

## MINISTER IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a) & (b): A  gross  estimated  revenue  of  Rs.45000  crore  is  anticipated  under Discovered Small Field Bid Round-II from 25 Contract Areas; and Rs.9000 crore under Discovered  Small  Field  Bid  Round-I  from  30  Contract  Areas.    The  gross  estimated revenue  is  based  on  estimates  of  oil  and  gas  hydrocarbon  in  place  reserves, assumption in terms of hydrocarbon recovery factor, hydrocarbon sale price, etc., from 25  Contract  Areas  considering  project  life  of  15  years.    However,  actual  revenue realization  from  these  fields  may  vary  based  on  actual  award  of  Contract  Areas; development strategy adopted by the contractor; actual production realized; and technoeconomics of the individual field, etc.

- (c) The last date of bid submission under Discovered Small Field Round-II has been extended by one month, i.e., by 18.01.2019, on account of requests received by the prospective bidders.
- (d) Under  the  DSF  Policy,  only  those  hydrocarbon  discoveries  of  National  Oil Companies  which  could  not  be  monetized  for  a  long  period  of  time  are  offered  for bidding.  The ONGC is continuing to make endeavours to optimize production from its operational fields, be it big fields or small fields.
- (e)      The  total  gas  accretion  of  ultimate  reserves  in  financial  year  2017-18  is  83.74 Billion  Cubic  Meter(BCM)  and  the  total  gas  ultimate  reserves  established  by  the public/private sector oil companies in the country as on 1.4.2018 is 2313 BCM.
- (f) Commercial  production  from  most  of  the  newly  identified  reserves  is  yet  to commence as the time required for development of hydrocarbon discoveries varies from

3  to  8  years  depending  upon  various  factors  such  as  location/size  of  discovery, availability of infrastructure facility besides other oil fields services.

(g)   Government has taken steps for development of gas based economy in the country which  include  plan  for  expansion  in  natural  gas  supply  with  the  help  of  additional domestic  gas  production,  expansion  of  Re-gasified  Liquefied  Natural  Gas  (RLNG) terminals  in  East  and  West  coast  of  the  country,  nationwide  gas  grid  including  North Eastern States and policy initiatives for the promotion of use of natural gas, i.e., clean fuel by all sectors of the economy.   For all exploration activities in the onland blocks, the respective State Government grants Petroleum Exploration Licence (PEL).

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