Lok Sabha Question No. 18 (UNSTARRED), answered on 2016-07-18
Subject: Auction of Oil and Gas Fields
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SUMEDHANAND SARASWATI, R. GOPALAKRISHNAN

## LOK SABHA UNSTARRED QUESTION NO. 18 TO BE ANSWERED ON 18.07.2016

## AUCTION OF OIL AND GAS FIELDS

18 SHRI SUMEDHANAND SARSWATI: SHRI R. GOPALAKRISHNAN:

पेट्रोल ियम एवं प्राक ृ तिक गैस मंत्री

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

- (a) whether the Government has offered / proposes to offer 67 oil and gas fields for auction through international bidding and give them pricing and marketing freedom;
- (b)  if so, the details thereof along with the salient features of the new auction policy announced by the Government;
- (c) whether any reserve price has been fixed by the Government for each of the oil and gas blocks;
- (d)  if so, the details thereof; and
- (e) whether the hydrocarbon sector is under performing in the country and if so, the details thereof and  the reasons therefor along with the remedial  measures taken/being taken by the Government in this regard?

## ANSWER

पेट्रोल ियम एवं प्राक ृ तिक गैस मंत्रािय में राज्य मंत्री ( श्री धमेन्द्र प्रधान ) ( स्विंत्र प्रभार )

## MINISTER  OF  STATE  IN  THE  MINISTRY  OF  PETROLEUM  &  NATURAL  GAS (SHRI DHARMENDRA PRADHAN) (INDEPENDENT CHARGE)

- a) Yes Madam
- b)  The  policy  has  been  notified  vide  Ministry  of  Petroleum  and  Natural  Gas's resolution dated 14.10.2015 which is available at http://www.petroleum.nic.in. Salient Features of the Policy are :-
3.  Revenue  Sharing  contract:  A  simple  and  easy  to  administer  contractual model in line with Government's effort to promote 'Ease of doing business'.
4.  Upto 100% FDI participation by foreign companies, joint ventures.
5.  Single license for Conventional & Non-conventional hydrocarbon.
6.  No restriction on exploration activity  during  contract  period:  Contractor  will be allowed to carry out exploration during entire contract duration.
7.  Crude Oil & Gas Pricing and Sale: Freedom to sell crude oil exclusively in domestic market. For Gas pricing, contractor will have freedom for pricing of gas produced.
8.  Custom duty: Customs duty is exempted on import of goods and services for Petroleum operations
9.  Oil Cess : No Oil Cess will be applicable on crude oil production

(c) & (d)   No Madam.

(e)    In  spite  of  natural  decline  from  existing  ageing  mature  fields,  oil  &  gas companies have been able to maintain the level of Production as can be seen from the oil & gas Production details placed at Annexure-I.

Government has taken various policy and administrative initiatives to enhance the  performance  of    hydrocarbon  sector  in  the  country.    Some  of  the  policy decisions taken by the Government in recent years 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.
-  Policy for grant of extension to the Production Sharing Contracts of 28 Small and medium sized discovered blocks.
-  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.
-  Appraisal of about 1.5 million sq. km un-appraised area of the Indian Sedimentary Basins.
-  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

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## Details of oil and gas production in the last five years

Country Crude Oil Production in last 5 Years (MMT)

| Year    |   2011-12 |   2012-13 |   2013-14 |   2014-15 | 2015-16   |
|---------|-----------|-----------|-----------|-----------|-----------|
| ONGC    |     23.71 |     22.56 |    22.24  |     22.26 | 22.37*    |
| OIL     |      3.85 |      3.66 |     3.466 |      3.41 | 3.22*     |
| Pvt/JVs |     10.53 |     11.64 |    12.08  |     11.78 | 11.36     |
| Total   |     38.09 |     37.86 |    37.79  |     37.46 | 36.95     |

Country Natural Gas Production in last 5 Years ( BCM)

| Year    |   2011-12 |   2012-13 |   2013-14 |   2014-15 | 2015-16   |
|---------|-----------|-----------|-----------|-----------|-----------|
| ONGC    |    23.316 |    23.548 |    23.284 |     22.02 | 21.18*    |
| OIL     |     2.633 |     2.642 |     2.626 |      2.72 | 2.84*     |
| Pvt/JVs |    21.609 |    14.49  |     9.497 |      8.91 | 8.23      |
| Total   |    47.558 |    40.68  |    35.41  |     33.66 | 32.25     |

Annexure-I