New Delhi: The Indian government has set ambitious targets for the Exploration and Production (E&P) sector, aiming to draw investments worth $100 billion by 2030, Oil Minister Hardeep Singh Puri said at the opening of Urja Varta 2024. Hosted at Bharat Mandapam, this inaugural session marked a significant step towards India’s journey to energy self-sufficiency and enhanced economic growth.
During his address, Minister Puri underscored the crucial role of the E&P sector in achieving these national goals. He highlighted that despite considerable advancements, vast reserves of crude oil and natural gas within India’s 26 sedimentary basins remain largely underexplored. Currently, only 10% of this potential is being tapped into, with plans to increase this to 16% by the end of 2024 through the upcoming Open Acreage Licensing Policy (OALP) Rounds.
Policy reforms and investments fuel growth
The minister detailed the transformative reforms that have been instituted to catalyze investments in the sector. The Ministry of Petroleum and Natural Gas (MoPNG) has been at the forefront of these changes, which include significant policy adjustments to streamline and simplify operational and regulatory processes. “The government is doing its part to catalyze investments in E&P,” Puri remarked, emphasizing the strategic shifts that have empowered stakeholders and bolstered the national agenda.
Highlighting the impact of these reforms, Puri pointed to the successful allocation of 144 blocks that cover approximately 244,007 sq. km through the first eight OALP bid rounds. The recently announced ninth round promises to extend this further, offering an area of about 136,596 sq. km spread over eight sedimentary basins, aimed at expanding the nation’s footprint in offshore exploration.
Since its inception in 2015, the Discovered Small Field (DSF) Policy has also made significant strides, bringing in around $2 billion in investments and introducing 29 new players to the field. This initiative has played a pivotal role in accelerating the pace of exploration activities and opening up new opportunities in the sector.
Scientific exploration and data-driven strategies
In a move to promote scientific and data-driven exploration strategies, the government has allocated Rs 7,500 crore towards acquiring new seismic data, financing stratigraphic wells, and procuring aerial survey data for challenging terrains. “We now have geo-scientific data for the Kerala–Konkan basin and the Mumbai offshore basin on the West coast, and the Mahanadi and the Andaman basins on the East coast,” Puri announced, showcasing the government’s commitment to leveraging technology and data to enhance exploration outcomes.
Additionally, the Directorate General of Hydrocarbons (DGH) is set to upgrade the National Data Repository to a cloud-based system. This enhancement will enable instant dissemination of seismic, well, and production data, streamlining access and improving the decision-making process for E&P activities.
Streamlining operations and enhancing business ease
Minister Puri also touched upon the government’s efforts to enhance the ease of doing business within the sector. He noted that 37 approval processes had been consolidated and simplified into 18, with nine now eligible for self-certification. This reduction in bureaucratic red tape is designed to expedite project approvals and operational starts, thereby minimizing delays that have historically hampered the sector.
Recognizing the need for continuous improvement, Puri emphasized, “We must explore the feasibility of expanding self-certification across additional processes.” He pointed out the crucial nature of reducing delays in the approval of field development plans, annual plans, and other regulatory permissions, especially as the nation’s dependency on imports continues to rise.
Joint working group to tackle industry concerns
A significant announcement from the minister was the formation of a Joint Working Group (JWG), which includes representatives from private E&P operators, National Oil Companies, MoPNG, and DGH. This group is tasked with addressing pressing industry concerns and working to further improve the ease of doing business. Puri has directed the DGH to complete the integration of its various online portals by the end of the year, a move that promises to enhance operational efficiencies across the board.
Fostering collaboration and innovation
As the two-day event progresses, over 400 delegates, 50 exhibitors, and 100 speakers will engage in discussions on a wide range of topics, from enhanced oil recovery techniques to the digitalization of the oil and gas sector. The conclave serves as a crucial platform for dialogue, fostering investment, innovation, partnerships, and sustainable growth in India’s hydrocarbon sector.
In conclusion, Minister Puri expressed his confidence that Urja Varta 2024 would act as a catalyst for collaboration and innovation in the energy sector, inviting stakeholders from industry, academia, and government to leverage this platform to contribute towards achieving India’s energy security goals. The event also features an Exhibition Gallery and Innovation Center, highlighting the latest technological advancements and sustainable practices within the industry.
