India’s exploration and production sector requires $100 billion in investments by 2030 to bolster domestic oil and gas production and reduce reliance on imports, stated Oil Minister Hardeep Singh Puri on Thursday. Highlighting the government’s focus on strengthening domestic production, Puri acknowledged that previous efforts to increase production have fallen short.
“E&P offers investment opportunities worth $100 billion by 2030. Our efforts in the past have been far short of what needs to be done in the E&P sector,” Puri remarked.
Despite substantial progress, much of India’s exploration and production potential remains untapped within its 26 sedimentary basins. “I find it strange that India is so heavily reliant on oil imports despite the abundant geological resources available to us,” Puri said.
India’s sedimentary basins currently hold about 651.8 million tonnes of crude oil and 1,138.6 billion cubic meters of natural gas, yet the country imports 85% of its crude oil requirements. So far, upstream sector companies have explored only 10% of the sedimentary basin. The government aims to increase the explored area to 16% by the end of 2024 through upcoming rounds of bids under the Open Acreage Licensing Program. The target is to expand the country’s exploration acreage to 1 million square kilometers by 2030.
“The government is doing its part to catalyze investments in E&P. The Ministry of Petroleum and Natural Gas has instituted sweeping reforms, empowering stakeholders to contribute to our nation’s progress,” Puri added.
Since its inception in 2015, the Discovered Small Field (DSF) Policy has attracted around $2 billion in investments and brought in 29 new players in the field. The government has awarded a total of 144 blocks covering approximately 244,007 square kilometers in the first eight bid rounds. An investment of Rs. 7,500 crores is being directed towards the acquisition of new seismic data, including that of the exclusive economic zone (EEZ), financing stratigraphic wells, and acquiring aerial survey data for difficult terrains.
Puri also announced the formation of a Joint Working Group (JWG) consisting of representatives from private E&P operators, national oil companies, the petroleum ministry, and the Directorate General of Hydrocarbons. The JWG will examine issues related to the ease of doing business in the E&P segment, assess the adequacy of current policies and procedures, and recommend revisions. The group is expected to submit its recommendations within eight weeks.
