Lok Sabha Question No. 3184 (UNSTARRED), answered on 2025-08-07
Subject: Boosting of Domestic Crude Oil and Natural Gas Production
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Dr. D Ravi Kumar

## LOK SABHA

## UNSTARRED QUESTION NO.3184

TO BE ANSWERED ON 07 TH  AUGUST 2025

## Boosting of Domestic Crude Oil and Natural Gas Production

3184. Dr. D Ravi Kumar:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

- (a) the steps taken by the Government to boost domestic crude oil and natural gas production and reduce dependency on imports in line with the 2025 energy security goals;
- (b) the response of private players to bids under the Open Acreage Licensing Policy (OALP) through the latest bid rounds including Round-VIII concluded in 2023;
- (c) the  current  number  of  private  oil  companies  engaged  in  exploration  activities  across  the country and reasons for their limited participation despite policy reforms;
- (d) the current share of private companies in exploration output keeping in  view that ONGC has drilled over hundred exploratory wells in 2023-24; and
- (e) the  reasons for  the Ministry's proposal to offer 60% stake and operatorship in producing fields  like  Mumbai  High  and  Bassein  &  Satellite  to  international  partners  and  its implications on domestic control and revenue?

## ANSWER

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

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

- (a) Government has taken various policy decisions and steps to boost domestic crude oil and natural gas production and reduce dependency on import of oil and gas which, inter alia , include:
- i. Policy  under  Production  Sharing  Contract  (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. Approval of Un-appraised areas in Sedimentary Basins under National Seismic Programme, 2017;
- viii. Policy frameworks for extension of Production Sharing Contracts (PSCs) for Discovered Fields and Exploration Blocks under Pre-New Exploration Licensing Policy (Pre-NELP) 2016 & 2017;
- ix. Policy to Promote/Incentivize Enhanced Recovery Methods of Oil/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 earlier blocked for exploration for decades;
- xiv. Amendments in the Oilfields (Regulation and Development) Act, 1948 to promote ease of doing business, contractual stability, operational efficiency and faster dispute resolution.

(b)& (c) In OALP-VIII and OALP-IX rounds, total four (04) private sector companies participated in the bidding process. The details of Bids are tabulated below: -

| S. No.   | Company Name(s)                                       |   No. of bids submitted in OALP-VIII |   No. of bids submitted in OALP-IX |
|----------|-------------------------------------------------------|--------------------------------------|------------------------------------|
| 1        | Vedanta Ltd.                                          |                                    1 |                                 28 |
| 2        | Sun Petrochemicals Private Limited                    |                                    1 |                                  7 |
| 3        | Reliance Industries Ltd + BP Exploration (Alpha) Ltd. |                                    1 |                                  1 |
| Total    | Total                                                 |                                    3 |                                 36 |

More than 15 private oil companies are engaged in exploration activities in Exploration and Production  (E&P)  industry  across  the  country.  The  E&P  industry  is  capital-intensive,  requiring significant  upfront  investment,  which  can  be  a  deterrent  for  new  entrants  and  smaller  players. Further,  inherent  risks  associated  with  exploration  activities  and  fluctuating  commodity  prices make securing financing challenging. Apart from this, Global oil and gas price volatility can impact the economic viability of projects which make it difficult to predict returns on investment.

To address the issues, the Government have from time to time introduced Policy Reforms as per the feedback received from the investors and changing dynamics of hydrocarbon industry with the aim to enhance ease of doing business and attract private players to the E&P Sector.

- (d)  In 2023-24, ONGC drilled 103 exploratory wells whereas private companies collectively drilled 11 wells in the same period.
- (e)   No such proposal for sale of stake is currently under consideration of Government.

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