Investment-friendly regime in E&P sector is petromin mantra

  • 22/04/2008

  • Financial Express (New Delhi)

Even as the last date for bidding for Nelp-VII has been deferred till May 16, owing to uncertainty over sops for the E&P players, the petroleum ministry has not given up just yet. The ministry, in its internal report, said focus would be given on increasing domestic production by attracting investments, both private and public, in the upstream sector. This would be done by involving the industry in formulating an investor-friendly E&P investment regime. Besides, all steps would be taken to increase the production from ONGC's (Oil and Natural Gas Corporation) assets including its maturing fields. The ministry aims at 80% exploration coverage during the 11th Plan period and proposes establishment of a national knowledge hub during the same period. Petroleum ministry sources said with exploration and development efforts made under new exploration licensing policy (Nelp), natural gas production in the country is likely to be doubled from the current level of about 90 million standard cubic meters per day (mmscmd) by the end of 11lh Plan. India has an estimated sedimentary area of 3.14 million square kilometre, comprising 26 sedimentary basins, of which, 1.35 million square kilometre area is in deepwater. At present, 1.38 million square kilometre are held under Petroleum Exploration Licences in 18 basins by national oil Companies such as ONGC, OIL India Limited (OIL) and private/joint venture company. Before implementing the Nelp in 1999, 11% of Indian sedimentary basins was under exploration, which has now increased significantly. The ministry said crude oil production by the national oil Companies (NOCs) during 2007-08 is expected to be about 29.663 million tonne (mmt), against the production of 29.11 mmt of crude oil during 2006-07. In addition, there would be production of 5.1 mmt from the private and JV Companies during 2007-08. Thus, total crude oil production in 2007-08 is expected to be about 34.763 mmt. Gas production during the previous fiscal is expected to be about 31.67 billion cubic meters (BCM) by ONGC, OIL and private/JV Companies. The contribution of private/JV Companies in gas production would be about 7.65 BCM.