Lok Sabha Question No. 4622 (UNSTARRED), answered on 2020-03-23
Subject: Import of Oil
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Prathap Simha, Parbatbhai Savabhai Patel, Naranbhai Bhikhabhai Kachhadiya, Jaswantsinh Sumanbhai Bhabhor

## LOK SABHA

## UNSTARRED QUESTION NO. 4622 TO BE ANSWERED ON 23 RD  MARCH, 2020

## Import of Oil

4622.  SHRI PRATHAP SIMHA:

SHRI PARBATBHAI SAVABHAI PATEL:

SHRI NARANBHAI KACHHADIYA:

SHRI JASWANT SINGH BHABHOR:

## पैट्रोलियम और प्राक ृ लिक गैस मंत्री

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

- (a)  whether  the  Ministry  has  taken  cognisance  of  the  vulnerability  of  India's  oil  imports  to tensions in the Middle East and if so, the details of the steps being taken to reduce reliance on import of petroleum and crude oil;
- (b)  whether  the  Government has  considered  expanding  its  oil  imports  from  other  countries and if so, the details thereof;

(c) the current oil demand in India and the protected growth of oil demand for the next five years and the details of measures taken by the Government to meet this oil demand;

- (d) the target fixed by the public sector oil marketing companies regarding production of oil and  natural  gas  under  the  existing  scheme  along  with  the  details  of  actual  achievements made by these companies so far;
- (e) whether there has been any decline in the production of crude oil and natural gas during the implementation of the existing scheme and if so, the reasons therefor; and
- (f) the measures taken by the public sector oil marketing companies in this regard?

## ANSWER

## पैट्रोलियम और प्राक ृ लिक गैस मंत्रािय में मंत्री ( श्री धमेन्द्र प्रधान ) THE MINISTER OF PETROLEUM AND NATURAL GAS

## (SHRI DHARMENDRA PRADHAN)

- (a):      Ministry  closely  studies  global  developments,  including  in  the  Middle  East,  that  may impact supply as well as price of hydrocarbons to India.  The crude oil and natural gas price fluctuation is a frequent market phenomenon.  Indian refineries import crude oil from diverse sources depending on their technical and commercial considerations and keeping in view the domestic requirement. Government has taken various steps to reduce reliance on import of crude  oil  and  gas  including  increasing  the  domestic  production,  promoting  biofuels  and renewable,  promoting  energy  efficiency  and  conservation  measures,  reduction  through improvement in refinery processes and demand substitution.
- (b):   Indian oil companies are attempting, on a continuous basis, to diversify source of crude and on 05 th February  2020 Indian Oil Corporation Limited and Rosneft has signed the first ever  Term  Contract  for  importing  of  2.0  Million  Metric  Ton  (MMT)  of  Urals  grade  crude  oil during the year 2020

(c):    India's  demand  of  crude  oil  in  the  Financial  Year  2018-19  is  213.22  MMT  and  the expected  demand  by  the  year  2025  is  305  MMT.    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  PreNELP 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.

(d): The target of production of crude oil and gas of Public Sector Oil Marketing companies was 4.63 MMT for the year 2019-20 and the achievement till February 2020 is 3.90 MMT.

(e) & (f): Crude oil production during April 2019 to January 2020 was 27.07 MMT, which is 5.95  %  lower  when  compared  with  April  2018  to  January  2019.      Natural  Gas  production during April 2019 to January 2020 was 26.43 BCM which is 3.87 % lower when compared with  the  corresponding  period  of  last  year.      Oil  and  gas  production  was  affected  due  to various  reasons,  which  include,  less  than  envisaged  production,  natural  decline  due  to mature fields and reservoir issues in some of the fields, shutdowns taken for maintenance activities, increase in water cut and disruption in field activities due to bandhs.

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