Lok Sabha Question No. 1735 (UNSTARRED), answered on 2024-12-05
Subject: Importance of Oil Exploration and Production
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Khagen Murmu, Shri Shrirang Appa Chandu Barne, Shri Dharmendra Yadav, Smt. Bharti Pardhi, Shri Arvind Ganpat Sawant

## LOK SABHA UNSTARRED QUESTION NO- 1735

## TO BE ANSWERED ON 5 TH  DECEMBER 2024

## IMPORTANCE OF OIL EXPLORATION AND PRODUCTION

## 1735. SHRI SHRIRANG APPA CHANDU BARNE:

SMT. BHARTI PARDHI:

SHRI DHARMENDRA YADAV:

SHRI ARVIND GANPAT SAWANT:

SHRI KHAGEN MURMU:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

- (a) the importance of oil Exploration and Production (E&P) sector in achieving energy self sufficiency and sustaining economic growth;
- (b) the future of oil exploration and the current oil production in the country;
- (c) the projections of oil demand and the availability of petrol in the country;
- (d) the future prediction of Indian oil along with the measures taken to accelerate the pace of exploration activities;
- (e)  whether  the  Government  has  reviewed  the  ongoing  oil  and  gas  projects  started  by  the PSUs; and
- (f) if so, the details of the findings thereof?

## ANSWER

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛमंũी ( ŵी सुरे श गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

(a) to (d):  As per the report of Energy Institute Statistical Review of World Energy, 2024, India  is  the  world's  third-largest  energy  consumer.  Further,  India's  energy  consumption  is increasing continuously, due to sustained economic growth over the last few years, through industrialisation, urbanisation, transportation needs, infrastructure development, rising income,  improved  standard  of  living,  increased  access  to  modern  energy  coupled  with increase in private consumption and gross fixed capital formation, etc. resulting in increasing import  of  Crude  Oil.  Currently,  about  ~13%  of  oil  and  ~53%  of  gas  are  domestically produced by E&P companies.  Exploration and Production (E&P) contributes to reducing the country's  dependence  on imported oil and gas through various mechanisms.  Production of crude  oil  has  been  29.36  MMT  during  2023-24  and  14.4  MMT  (provisionally)  during  the current  year  2024-25.  As  per  International  Energy  Agency,  projected  demand  of  oil  and petrol  in  India,  by  2030,  would  be  6.6  mb/d  (million  barrel  per  day)  and  1.0  mb/d respectively.

Government  has  been  taking  various  steps  to  boost  domestic  oil  and  gas  production  and accelerate the pace of exploration activities which, inter-alia, include:

- i. Policy under PSC regime for early monetization of hydrocarbon discoveries, 2014.
- ii. Discovered Small Field Policy, 2015.

iii. Hydrocarbon Exploration and Licensing Policy (HELP), 2016.

- iv. Policy for Extension of PSCs, 2016 and 2017.
- v. Policy for early monetization of Coal Bed Methane, 2017.
- vi. Setting up of National Data Repository, 2017.

vii. Appraisal of Un-appraised areas in Sedimentary Basins under National Seismic Programme, 2017.

viii.  Policy framework for extension of PSCs for Discovered Fields and Exploration Blocks under Pre-New Exploration Licensing Policy (Pre-NELP), 2016 and 2017.

- ix. Policy to Promote and Incentivize Enhanced Recovery Methods for Oil and Gas, 2018.
- x. Policy Framework for exploration and exploitation of Unconventional Hydrocarbons under Existing  Production  Sharing  Contracts  (PSCs),  Coal  Bed  Methane  (CBM)  Contracts  and Nomination Fields, 2018.
- xi. Natural Gas Marketing Reforms, 2020.
- xii. Lower  Royalty  Rates,  Zero  Revenue  Share  (till Windfall  Gain)  and  no  drilling commitment in Phase-I in OALP Blocks under Category II and III basins to attract bidders.
- xiii. Release of about 1 Million Sq. Km. (SKM) 'No-Go' area in offshore which were blocked for exploration for decades.

xiv. Government is also spending about Rs.7500 Cr. for acquisition of seismic data in onland and  offshore  areas  and  drilling  of  stratigraphic  wells  to  make  quality  data  of  Indian Sedimentary Basins available to bidders. Government has approved acquisition of additional 2D Seismic data of 20,000 LKM in onland and 30,000 LKM in offshore beyond Exclusive Economic Zone (EEZ) of India.

- (e)  &  (f):    Oil  &  Gas  CPSEs  have  a  robust  online  monitoring  system  for  assessing  the implementation status of their projects. Government provides supportive supervision through online project monitoring portal (www.pariyojana.gov.in), periodic review meetings and site visits for resolution of issues enabling  timely completion  of  the projects. Further, government also proactively facilitates CPSEs to speed up and resolve all critical inter-state and inter-ministerial issues through  the  review  mechanism  of  PRAGATI  &  Project Monitoring Group (PMG).

As per information available on the project monitoring pariyojana portal (www.pariyojana.gov.in) maintained by the Government total 145 projects costing Rs 100 crore & above are under implementation with an approved project cost of Rs 5.65 lakh crore. Since 2014, a total of 379 projects costing Rs 100 crore & above with total cost of 4.86 lakh crore have been completed.

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