Joint group formed for E&P sector reforms: Puri

Petroleum and Natural Gas Minister Hardeep Singh Puri addresses the participants of the first edition of UrjaVarta 2024 in Delhi on Thursday. | Image Source: Special arrangement

Petroleum Minister Hardeep Singh Puri said a joint working group (JWG) has been set up to facilitate the exploration and production (E&P) sector. The JWG comprises private E&P operators, domestic oil companies, the Ministry of Petroleum and Natural Gas and the Directorate General of Hydrocarbons (DGH).

Mr Puri said 37 approvals have been streamlined to 18, with nine qualifying for self-certification. He said the government recognises the need for further reforms. “We need to explore the feasibility of extending self-certification to additional processes,” he said, citing how reducing delays in approval of field development and annual plans; and regulatory approvals is crucial given India’s growing dependence on imports.

$100 billion investment

Underlining the importance of E&P in achieving energy self-sufficiency and sustaining economic growth, Mr Puri said the sector offers investment opportunities worth USD 100 billion by 2030.

Mr. Puri highlighted the huge potential of 26 sedimentary basins in India, which contain significant reserves of crude oil and natural gas that are yet to be fully exploited, the ministry said in a statement issued during his speech.

“Despite significant progress, only 10% of our sedimentary basin is currently explored. With the allocation of blocks under the upcoming Open Acreage Licensing Policy (OALP) rounds, this will increase to 16% by the end of 2024.”

I am considering a larger area

The minister told a meeting organised by DGH, which aims to sustainably utilise India’s untapped hydrocarbon resources in mining, that by 2030, “we aim to increase India’s exploration area to 1 million square kilometres”.

Elaborating on the need to streamline operational and regulatory processes, Mr. Puri said, “The government is doing its part to catalyze investments in E&P. The Ministry of Petroleum and Natural Gas has introduced sweeping reforms, empowering stakeholders to contribute to the progress of our country. The ‘no-go’ areas in India’s EEZ (exclusive economic zone) have been reduced by almost 99%.”

A total of 144 blocks covering an area of ​​about 244,007 sq km were awarded in the first eight rounds of OALP bidding and the recently announced 9th round of OALP offers an area of ​​about 136,596 sq km spread over eight sedimentary basins, which aims to expand India’s participation in offshore exploration, he added.

Since its introduction in 2015, the Discovered Small Field (DSF) policy has attracted $2 billion in investment and introduced 29 new entrants to the industry.

Also, as the government is promoting data-driven exploration, ₹7,500 crore will be earmarked for acquiring new seismic data, including for EEZ, funding for stratigraphic drilling and acquisition of airborne survey data for difficult terrain. “We now have geoscientific data for the Kerala-Konkan basin and Mumbai offshore basin on the west coast and Mahanadi and Andaman basins on the east coast,” said Mr. Puri. Referring to the upgrading of the national data repository to a cloud-based NDR by the DGH, he said it would enable instant distribution of seismic, drilling and production data.