Lok Sabha Question No. 4762 (UNSTARRED), answered on 2019-07-22
Subject: Production of Oil and Natural Gas
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Raja Amareshwara Naik, Shivkumar Chanabasappa Udasi, Rahul Kaswan, Sukanta Majumdar

## LOK SABHA UNSTARRED QUESTION NO. 4762

## TO BE ANSWERED ON 22 nd  July, 2019

## Production of Oil and Natural Gas

## 4762. SHRI RAJA AMARESHWARA NAIK:

SHRI SHIVAKUMAR C. UDASI:

SHRI RAHUL KASWAN:

DR. SUKANTA MAJUMDAR:

## पैट्रोलियम व प्राक ृ लिक गैस मंत्री

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

- (a) whether the domestic oil and gas production stagnated for the last few years while fuel demand has been rising by 5-6% annually and if so, the details thereof;
- (b)  whether  the  import  of  oil  dependence  has  increased  since  then  and  if  so,  the details thereof;
- (c) whether the Government is looking at private investment to raise domestic oil and gas  production  in  the  country,  and  if  so,  the  details  thereof  and  if  not,  the  reasons therefor;
- (d) whether India ranks third in the world in import of crude oil and if so, the details thereof; and
- (e) the details of various other steps taken/being taken by the Government to increase the  crude  oil  production  and  reduce  oil  imports  along  with  the  outcome  of  the  said steps?

## ANSWER

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

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

- (a) & (b) The details of domestic crude oil production in Million Metric Tonnes (MMT), natural  gas  production  in  Million  Metric  Standard  Cubic  Meters  (MMSCM)  and dependency on crude oil (in %) for the last five years are as under:

|                                                                  | 2014-15   | 2015-16   | 2016-17   | 2017-18   | 2018-19   |
|------------------------------------------------------------------|-----------|-----------|-----------|-----------|-----------|
| Domestic crude oil production (including condensate) in MMT      | 37.5      | 36.9      | 36.0      | 35.7      | 34.2      |
| Domestic natural gas production (in MMSCM)                       | 33,657    | 32,249    | 31,897    | 32,649    | 32,873    |
| Crude oil import dependency based on consumption of POL products | 78.3%     | 80.6%     | 81.7%     | 82.9%     | 83.7%     |

(c) to (e) The policy initiatives taken by the Government to boost private investment 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

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, 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.  Oil  and  Natural  Gas Corporation  (ONGC)  and  Oil  India  Limited  (OIL)  have  issued  Notice  Inviting  Offer (NIO) for bidding out 66 small and marginal fields in last week of June, 2019.

India ranks third in the world in crude oil imports as per the BP Statistical Review of World Energy of June, 2019.

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