Lok Sabha Question No. 215 (STARRED), answered on 2016-05-09
Subject: Target of Crude Oil/Gas Production
Ministry: PETROLEUM AND NATURAL GAS
Asked by: NAGENDRA KUMAR PRADHAN, RAHUL RAMESH SHEWALE

## GOVERNMENT OF INDIA MINISTRY OF PETROLEUM AND NATURAL GAS

## LOK SABHA STARRED QUESTION NO. 215 TO BE ANSWERED ON 9 th  May, 2016

## Target of Crude Oil/Gas Production

## *215. SHRI NAGENDRA KUMAR PRADHAN: SHRI RAHUL SHEWALE:

पैट्रोलियम व प्राक ृ लिक गैस मंत्री

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

- (a) whether  the  crude  oil/gas/  hydrocarbon  output  of  Oil  and  Natural  Gas Corporation Limited (ONGC) and Oil India Limited (OIL) from onshore/offshore fields has witnessed variation vis-a-vis the target set during the last three years;
- (b)    if  so,  the  details  thereof  and  the  reasons  therefor  along  with  target  fixed  and achieved during the said period, companywise;
- (c)    whether State-run producers are struggling to meet their production cost/ earn profits  in  view  of  the  said  decline  and  if  so,  the  details  thereof  along  with  plan chalked out by the Government to recoup the production of oil and gas in the next few years;
- (d)    whether  the  Government  has  conducted  any  study  to  find  out  the  factors responsible for decline in output of the State-run producers and if so, the details and the outcome thereof; and
- (e)  the corrective measures taken/ proposed to be taken by the Government and the upstream oil and gas companies in this regard?

## 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) to (e) A statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (e)  OF  THE  LOK  SABHA STARRED QUESTION NO. 215 BY SHRI NAGENDRA KUMAR PRADHAN AND SHRI RAHUL  SHEWALE  TO  BE  ANSWERED  ON  09.05.2016  REGARDING  TARGET  OF CRUDE OIL/GAS PRODUCTION

- (a) to (b) :  Crude oil & natural gas production target and achievements for Oil and Natural Gas Corporation  Limited  (ONGC)  &  Oil  India  Limited  (OIL)  during    last  three  years  is  as given below:

|                                | 2013-14                        | 2013-14                        | 2014-15                        | 2014-15                        | 2015-16                        | 2015-16                        |
|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|
| Companies                      | Target                         | Actual                         | Target                         | Actual                         | Target                         | Actual *                       |
| Production of Crude Oil (MMT)  | Production of Crude Oil (MMT)  | Production of Crude Oil (MMT)  | Production of Crude Oil (MMT)  | Production of Crude Oil (MMT)  | Production of Crude Oil (MMT)  | Production of Crude Oil (MMT)  |
| ONGC                           | 24.090                         | 22.246                         | 23.510                         | 22.267                         | 22.732                         | 22.368                         |
| OIL                            | 3.910                          | 3.466                          | 3.600                          | 3.412                          | 3.595                          | 3.226                          |
| Production of Natural Gas(BCM) | Production of Natural Gas(BCM) | Production of Natural Gas(BCM) | Production of Natural Gas(BCM) | Production of Natural Gas(BCM) | Production of Natural Gas(BCM) | Production of Natural Gas(BCM) |
| ONGC                           | 23.442                         | 23.284                         | 24.000                         | 22.022                         | 23.908                         | 21.177                         |
| OIL                            | 2.740                          | 2.626                          | 2.838                          | 2.722                          | 3.001                          | 2.838                          |

Main reasons for  shortfall  in  production  of  crude  oil  and  natural  gas  of  ONGC  &  OIL  are because of the following:

- i.  More than expected natural decline from mature and aging fields.
- ii.  Delay in completion of development and re-development projects.
- iii.  Frequent bandhs and blockades in the operational areas.
- iv.  Lesser offtake of gas by consumers.
- v.  Gas production affected due to GAIL pipeline accident near Tatipaka.
- vi.  Water and sand ingress in the wells.
- vii.  Contractual issues.
8. (c) :  ONGC & OIL have been able to make reasonable Profit After Tax (PAT) after recovery of cost of production. Details are as under:

(Rs. In Crore)

|      |   2013-14 |   2014-15 |   2015-16* |
|------|-----------|-----------|------------|
| ONGC |   22094.8 |   17733   |   11587.5  |
| OIL  |    2981.3 |    2510.2 |    1860.87 |

(d) to (e) : Most of the oil and gas producing fields of ONGC & OIL are mature and at natural declining  phase.  In  order  to  arrest  the  natural  decline  of  these  fields  ONGC  &  OIL  have taken  various  action  for  augmenting/maintaining  crude  oil  and  natural  gas  production.  In addition to focus on repair of existing well, artificial lift  and  stimulation of  wells,  they  have also  being  taking  help  of  modern  technology  such  as  Improved  Oil  Recovery  (IOR)  & Enhanced  Oil  Recovery  (EOR)  techniques,  and  redevelopment  of  various  existing  fields. Government has also taken various policy initiatives for enhancing crude oil and natural gas production viz, Hydrocarbon Exploration & Licensing Policy (HELP), Discovered Small Field Policy, Marketing and Pricing Freedom for Crude oil and Natural gas etc.

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