Lok Sabha Question No. 330 (UNSTARRED), answered on 2019-06-24
Subject: Production of Oil and Gas
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Pankaj Chowdhary, Ramya  Haridas

## Production of Oil and Gas

## 330. SHRI PANKAJ CHAUDHARY: SHRIMATI RAMYA HARIDAS:

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

- (a) whether the Government proposes to increase indigenous oil and gas production to reduce imports in view of the substantial increase in oil prices globally;
- (b)  if  so,  the  details  thereof  along  with  the  further  steps  taken/being  taken  by  the Government for oil extraction from new oil fields in the country; and
- (c)  the  concrete  measures/steps  being  taken  by  the  Government  to  expedite  for providing gas in the cities through pipeline?

## ANSWER

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

(a)  &  (b) The  policy  initiatives  taken  by  the  Government  to  increase  domestic production of oil and gas include:-

- i. Policy for Relaxations, Extensions and Clarifications under Production Sharing Contract (PSC) regime for early monetization of hydrocarbon discoveries
- ii. Discovered Small Field Policy
- iii. Hydrocarbon Exploration and Licensing Policy
- iv. Policy for Extension of Production Sharing Contracts
- v. Policy for early monetization of Coal Bed Methane
- vi. Setting up of National Data Repository
- 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
- x. Policy to Promote and Incentivize Enhanced Recovery Methods for Oil and Gas
- xi. Policy framework for exploration and exploitation of Unconventional Hydrocarbons under existing Production Sharing Contracts, Coal Bed Methane contracts and Nomination fields

The  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 aims to  boost exploration activities with greater weightage to work programme, simplified fiscal and contractual terms, bidding of exploration blocks under Category II and III sedimentary basins without any production or revenue sharing to Government, early monetization of discoveries by extending fiscal incentives, incentivizing   gas  production  including  marketing  and  pricing  freedom,  induction  of latest technology and capital, 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.

(c) Supply  of  Natural  Gas  in  form  of  Piped  Natural  Gas  (PNG)  to  households, commercial  units  and  industries  and  supply  of  Natural  Gas  in  form  of  Compressed Natural Gas (CNG) to vehicles are part of development of City Gas Distribution (CGD) network  and  the  same  is  carried  out  by  the  entities  authorized  by  Petroleum  and Natural  Gas  Regulatory  Board  (PNGRB).  So  far,  PNGRB  has  authorized  228 Geographical  Areas  (GAs)  for  development  of  CGD  network  across  country  till  10 th CGD Bidding Round. 298 districts have been covered under 9 th and 10 th CGD Bidding Round for supply of PNG and CNG.

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