Lok Sabha Question No. 4734 (UNSTARRED), answered on 2019-07-22
Subject: Production of Oil and Natural Gas
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shrirang Appa Barne, Girish Bhalchandra Bapat, Vinayak Bhaurao Raut, Chandra Sekhar Sahu

## Production of Oil and Natural Gas

## 4734. SHRI SRIRANGA APPA BARNE: SHRI GIRISH BHALCHANDRA BAPAT: SHRI VINAYAK RAUT: SHRI CHANDRA SEKHAR SAHU:

## पैट्रोलियम व प्राक ृ लिक गैस मंत्री

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

(a) whether all the energy load is coming on liquid petroleum and the country has not been  able  to  produce  sufficient  crude  oil  and  natural  gas  to  meet  its  energy requirement and if so, the details thereof;

(b) whether the country is not seeing results of the last licensing rounds and if so, the details thereof;

(c)  the  steps  taken/being  taken  by  the  Government  to  deal  with  those  investor challenges removing ambiguities of the licensing operating regimes and ensuring that our contracts are investor-friendly; and

(d) if so, the details of the steps taken/ being taken by the Government to address the bottle-necking/hindrances of oil and gas production and supply in the country?

## ANSWER

## पेट्रोलियम और प्राक ृ लिक गैस मंत्री ( श्री धमेन्द्र प्रधान )

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

(a) As per the Energy Statistics, 2019 report published by the Ministry of Statistics and Programme Implementation, out of total energy consumption from various sources in 2017-18, 34.32% was from crude oil. The details of domestic crude oil production in Million Metric Tonnes (MMT), natural gas production in Million Metric Standard Cubic Meters  (MMSCM)  and  import  dependency  thereon  for  the  last  three  years  are  as under:

|                                                             | 2016-17   | 2017-18   | 2018-19   |
|-------------------------------------------------------------|-----------|-----------|-----------|
| Domestic crude oil production (including condensate) in MMT | 36.0      | 35.7      | 34.2      |
| Import dependency on crude oil                              | 81.7%     | 82.9%     | 83.7%     |
| Domestic natural gas production (in MMSCM)                  | 31,897    | 32,649    | 32,873    |
| Import dependency on natural gas                            | 44.6%     | 46.4%     | 47.2%     |

(b) In  the  first  Bid  Round of Hydrocarbon Exploration Licensing Policy (HELP)/Open Acreage Licensing Policy (OALP), 55 Blocks having an acreage area of 59,282 sq. km. have been awarded in October, 2018. Under OALP Bid Round-II and III, 32 blocks having acreage area of 59000 sq. km. have been awarded on 16 th July, 2019. In the first  Bid  Round  of  Discovered  Small  Field  (DSF)  Policy,  total  30  contracts  for  43 discovered  small  fields  were  signed  with  20  companies  in  March,  2017.  In  DSF Round-II,  23  Contract  Areas  spread  over  3,000  sq.km.  have  been  awarded  on  7 th March, 2019.

(c)  &  (d) Steps  taken  by  the  Government  to  deal  with  investor  challenges  and removing ambiguities in the licensing operating regimes are as follows:

- 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. Policy framework to streamline the working of Production Sharing Contracts in Pre-NELP and NELP Blocks
- vii. Policy to Promote and Incentivize Enhanced Recovery Methods for Oil and Gas viii. Policy framework for exploration and exploitation of Unconventional Hydrocarbons under existing Production Sharing Contracts, Coal Bed Methane contracts and Nomination fields
- ix. 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 aim 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.
- x. Ease  of  doing  business:  Formulation  of  Standard  Operating  Procedures (SOPs), online processing and  electronic single window  for expeditious approval of contractual/statutory clearances. Constitution of  Empowered Coordination  Committee  (ECC)  under  the  chairmanship  of  Cabinet  Secretary for  streamlining  and  expediting  grant  of  approval/clearances  from  various Ministries/Departments/Agencies.

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