Govt unveils comprehensive initiatives to boost domestic oil production, says Minister
New Delhi: In a strategic move aimed at bolstering domestic oil production and reducing dependence on imports, the Indian government has implemented a series of comprehensive long-term and short-term policy initiatives. The Minister of State (MoS) in the Ministry of Petroleum and Natural Gas, Rameswar Teli, highlighted these initiatives in a written reply to the Upper House of the Parliament, emphasizing the government’s commitment to achieving self-sufficiency in the crucial oil and gas sector.
He informed the Floor of the House that as the long-term policy initiatives, the centre is focused on ‘Discovered Small Field Policy, 2015’- focused on harnessing the potential of small oil fields, ‘Hydrocarbon Exploration and Licensing Policy, 2016’- facilitated the award of exploration acreages to boost the Exploration and Production (E&P) sector,
‘Policy for Extension of Production Sharing Contracts, 2016 and 2017’ provided a framework for extending existing production sharing contracts.
Further, ‘Policy for early monetization of Coal Bed Methane 2017’- aimed at expediting the monetization of coal bed methane resources, ‘Setting up of National Data Repository, 2017’- a centralized repository for comprehensive hydrocarbon data, ‘Appraisal of Un-appraised areas in Sedimentary Basins under National Seismic Programme, 2017’- focused on evaluating untapped potential in sedimentary basins.
Also, ‘Re-assessment of Hydrocarbon Resources 2017’- a comprehensive re-evaluation of hydrocarbon resources, ‘Policy to Promote and Incentivize Enhanced Recovery Methods for Oil and Gas, 2018’- encouraging the use of advanced recovery methods, ‘Policy Framework for Exploration and Exploitation of Unconventional Hydrocarbons, 2018’- Focusing on tapping into unconventional hydrocarbon sources. And, ‘Reforms in Hydrocarbon Exploration and Licensing Policy, 2019’- introduced to enhance domestic exploration and production.
Besides, seven short and medium-term initiatives- ‘Early Monetization of Existing Discoveries’ to streamline the process for early monetization of oil and gas discoveries.
Second, ‘Improving Recovery Factor through IOR and EOR Techniques’- implementing Improved Oil Recovery and Enhanced Oil Recovery techniques, ‘Revival of Sick Wells’ for rehabilitation of non-functional wells.
Adding, ‘Renewal of Facilities and Infrastructure’ for upgrading existing facilities for optimal performance, ‘Monetization of Small and Marginal Discoveries’- leveraging service contracts and outsourcing for onshore discoveries. ‘Redevelopment of Existing Matured Fields’ to enhance the productivity of mature fields and develop new ones and ‘Induction of Suitable Technologies’- implementing advanced technologies in selective fields.
Minister Teli highlighted the significant shift brought about by the Hydrocarbon Exploration and Licensing Policy (HELP) in 2016, transitioning from the production-sharing mechanism to a revenue-sharing model. Subsequent reforms in 2019, including royalty holidays and concessional rates, aimed to make the policy more attractive.
Since 2017, seven successful rounds of the Open Acreage Licensing Policy (OALP) have been concluded, awarding 134 exploration blocks covering 2,07,691 sq. km. Notably, 99 per cent of previously restricted areas have been opened for exploration and production activities.
To facilitate ease of doing business in the E&P sector, the government has embraced digital platforms, online clearances through Urja Pragati Platform, self-certification for compliance, GIS-based monitoring through Urja Suraksha Samanvay, and enhanced collaboration via the Upstream India Portal, the minister informed.
