Lok Sabha Question No. 3665 (UNSTARRED), answered on 2016-08-08
Subject: Production of Crude Oil
Ministry: PETROLEUM AND NATURAL GAS
Asked by: MANSUKHBHAI DHANJIBHAI VASAVA, BOORA NARSAIAH GOUD, CHANDRAKANT BHAURAO KHAIRE, George Baker, RAMEN DEKA, BANSHILAL MAHTO, A.T. (NANA) PATIL

## LOK SABHA UNSTARRED QUESTION NO. 3665 TO BE ANSWERED ON 8 th  August, 2016

## Production of Crude Oil

## 3665.  SHRI MANSUKHBHAI DHANJIBHAI VASAVA:

DR. BOORA NARSAIAH GOUD: SHRI CHANDRAKANT KHAIRE: SHRI GEORGE BAKER: SHRI RAMEN DEKA: DR. BANSHILAL MAHATO: SHRI A.T. NANA PATIL

पैट्रोलियम व प्राक ृ लिक गैस मंत्री

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

(a) whether the current slump in international oil prices is impacting the production of crude oil and natural gas in the country;

(b) if so, the details thereof and the reaction of the Government thereto along with the corrective steps taken/being taken by the Government in this regard;

(c) whether the Government has prepared any blue-print for improving the production and supply of natural gas in the country and if so, the details thereof along with the steps taken to meet the domestic demand indigenously;

(d)  whether  the  Government  proposes  to  increase  domestic  gas  prices  for  existing  oil  and  gas fields operated by public/private sector companies to scale up production of natural gas and if so, the details thereof; and

(e) the details of expenditure incurred on import of natural gas during the last three years and the current year and steps taken to reduce the import of natural gas in the country, country-wise?

## ANSWER

पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री (स्विन्त्त्र प्रभार) (श्री धमेन्त्र प्रधान)

## MINISTER  OF  STATE  (I/C)  IN  THE  MINISTRY  OF  PETROLEUM  &  NATURAL  GAS (SHRI DHARAMENDRA PRADHAN)

(a)  &  (b). Currently,  there  is  no  visible  impact  on  country's  oil  &  natural  gas  production  due  to slump in crude oil prices.  Decline in Crude oil prices affect revenues and profits of E&P companies and  extended  declines  may  even  adversely  affect  their  ability  to  finance  planned  capital expenditures for major exploration, development and re-development projects resulting in adverse impact on production of oil and gas in the long run.

(c) to (e). In order to accelerate the pace of exploration and enhance production of natural gas in the  country  and  to  reduce  import  dependency,  the  Government  has  taken  various  policy initiatives which are as under:

-  Government  has  approved  a  new  Hydrocarbon  and  Exploration  Licensing  Policy  (HELP) and same has been notified on 30 th March 2016.
-  Marketing  and  Pricing  freedom  for  new  gas  production  from  Deepwater,  Ultra  Deepwater and High Pressure-High Temperature areas subject to certain conditions, to incentivize gas production from such areas.
-  Policy for grant of extension to the Production Sharing Contracts of 28 Small and medium sized discovered blocks, so that investors can plan their investment.
-  Policy  Framework  for  relaxation,  extensions  and  clarifications  at  the  development  and production stage under PSC regime for early monetization of hydrocarbon discoveries.
-  New Domestic Natural Gas price Guidelines, 2014: Under these guidelines, gas price has been linked to the market/ important hub prices.
-  Discovered Small Fields Policy- 67 oil & gas fields which have been held by ONGC and OIL for  many  years,  but  have  not  been  exploited,  has  been  approved  for  bidding  under  this policy. The bid has been launched on 25.05.2016.
-  Appraisal of about 1.5 million sq. km un-appraised area of the Indian Sedimentary Basins has been initiated.
-  Re-assessment of Hydrocarbon Resources.
-  National Data Repository has been setup.
-  Policy for exploration and exploitation of Shale Gas/Shale Oil resources by NOCs under the Nomination Regime.
-  Policy for exploration in the Mining Lease (ML) areas after the expiry of exploration period.
-  Policy  on  Non-exclusive  Multi-client  Speculative  Survey  for  assessment  of  unexplored sedimentary basins has been operationalized.

As regards revision of Gas Pricing formula for gas produced from NELP, Pre-NELP & nomination regimes, presently there is no proposal under consideration.

The details of Liquefied Natural Gas (LNG) imported along with price for last three year (FY 201314 to 2015-16) and Current year (till April, 2016) is as under:

|     Year |   Quantity (in TMT) |   Million US $ | Rs. in Crore   |
|----------|---------------------|----------------|----------------|
| 13020.7  |             8553.62 |        51699.3 | 2013-14        |
| 13289.1  |             9230.83 |        56340   | 2014-15        |
| 14376.9  |             6710.46 |        43782.4 | 2015-16        |
|  1308.17 |              380.94 |         2532.1 | 2016-17(April) |

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