Transformative Policy Initiatives taken to Enhance Exploration & Production of Oil & Gas

oil and natural gas sector
oil and natural gas sector

PIB News Update: Union Minister of Petroleum & Natural Gas Shri  Dharmendra Pradhan has informed thatThe total consumption of petroleum products for the last three years is as under:

Financial Year 2016-17 2017-18 2018-19
Consumption of Petroleum Products

(in Thousand Metric Tonnes)

194597 206166 213216

Government has taken several transformative policy measures/initiatives to enhance exploration & production of oil and gas in the country, which include:

  1. Policy for Relaxations, Extensions and Clarifications under Production Sharing Contract (PSC) regime for early monetization of hydrocarbon discoveries, 2014
  2. Discovered Small Field Policy, 2015
  3. Hydrocarbon Exploration and Licensing Policy, 2016
  4. Policy for Extension of Production Sharing Contracts, 2016 and 2017
  5. Policy for early monetization of Coal Bed Methane, 2017
  6. Setting up of National Data Repository, 2017
  7. Appraisal of Unapprised areas in Sedimentary Basins.
  8. Re-assessment of Hydrocarbon Resources.
  9. Policy framework to streamline the working of Production Sharing Contracts in Pre-NELP and NELP Blocks, 2018
  10. Policy to Promote and Incentivize Enhanced Recovery Methods for Oil and Gas, 2018
  11. Policy framework for exploration and exploitation of Unconventional Hydrocarbons under existing Production Sharing Contracts, Coal Bed Methane contracts and Nomination fields, 2018.
  12. Grant of Marketing including pricing freedom, on natural gas production from High Pressure- High Temperature (HP-HT) reservoirs and deepwater and ultra deepwater areas (with ceiling), gas produced from CBM blocks, blocks awarded under Hydrocarbon Exploration and Licensing Policy (HELP) and Discovered Small Fields (DSF) Policy, commercial gas produced from North-Eastern Region (NER) on or after 1st July, 2018 and also in those new gas discoveries whose Field Development Plan (FDP) has been approved after February 2019. To incentivize additional gas production from Administered Price Mechanism (APM) fields, reduction in royalty by 10% of the applicable royalty has also been granted on the additional production over and above business-as-usual scenario.
  13. In addition, Government in February, 2019 approved major reforms in exploration and licensing policy to enhance exploration activities, attract domestic and foreign investment in unexplored/unallocated areas of sedimentary basins and accelerate domestic production of oil and gas from existing fields. The policy reforms inter alia aim to boost exploration activities with greater weightage to work programme and bidding of exploration blocks under Category II and III sedimentary basins without any production or revenue sharing to Government. Further, reforms envisage simplified fiscal and contractual terms, early monetization of discoveries by extending fiscal incentives and incentivizing gas production including marketing and pricing freedom. The policy also provides more functional freedom to National Oil Companies for collaboration and private sector participation for production enhancement methods in nomination fields. Streamlining approval processes and promoting ease of doing business including electronic single window mechanism is also an important aspect of policy reforms.

Export of crude oil is not permitted as per extant policy. In so far as import of crude oil is concerned, 17% of crude oil requirement is met through indigenous production and the balance 83% requirement is met through imports. The details of import of crude oil and import/export of petroleum products are given below:

 

Import/Export of crude oil and petroleum products
2017-18 2018-19 2019-20 (April-January) (P)
Quantity Value Quantity Value Quantity Value
Million Tonne US$ Billion ₹ Crore Million Tonne US$ Billion ₹ Crore Million Tonne US$ Billion ₹ Crore
Import of crude oil 220.4 87.8 566450 226.5 111.9 783183 188.4 87.7 617344
Import of petroleum products 35.5 13.6 88374 33.3 16.3 113665 35.8 15.0 106191
Export of petroleum products 66.8 34.9 225388 61.1 38.2 267697 54.7 31.3 221206
Source: Petroleum Planning & Analysis Cell, (P): Provisional

The details and the price of crude oil imported during the last three years are as under:

Years 2016-17 2017-18 2018-19
Oil Imports (in Million Metric Tonne) 213.93 220.43 226.50
Aggregated Price of Crude Oil (US$ per barrel) 47.56 56.43 69.88

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