The Business Bytes
New Delhi, July 11, 2024 (TBB Bureau): The Exploration and Production (E&P) sector presents investment opportunities worth 100 billion USD by 2030, announced Hardeep Singh Puri, Minister of Petroleum & Natural Gas, during his address at the inaugural session of the first edition of Urja Varta. Emphasizing the sector’s role in achieving energy self-sufficiency and fostering economic growth, the Minister highlighted India’s 26 sedimentary basins, which hold substantial reserves of crude oil and natural gas yet to be fully exploited.
“While only 10% of our sedimentary basin area is currently under exploration, this figure is set to increase to 16% by the end of 2024 following the forthcoming Open Acreage Licensing Policy (OALP) Rounds,” Minister Puri noted. He underscored the government’s efforts to streamline operational and regulatory processes, stating, “The Ministry of Petroleum and Natural Gas has implemented comprehensive reforms to catalyze investments in E&P, aiming to expand India’s exploration acreage to 1 million sq. km. by 2030.”
Minister Puri also highlighted significant milestones in exploration initiatives such as the OALP and Discovered Small Field (DSF) Policy. “Through the first 8 OALP bid rounds, 144 blocks covering approximately 244,007 sq. km. have been awarded. The recently announced OALP IX round offers an additional area of approximately 136,596 sq. km. across 8 sedimentary basins, further enhancing our offshore exploration footprint,” he remarked. Since its inception in 2015, the DSF Policy has attracted investments of around 2 billion USD and introduced 29 new players to the sector.
Speaking on the government’s focus on data-driven exploration, Minister Puri disclosed an investment of Rs. 7,500 crore towards acquiring new seismic and aerial survey data, including within India’s Exclusive Economic Zone (EEZ). “We now possess geo-scientific data for key basins like Kerala–Konkan and Mumbai offshore on the West coast, as well as the Mahanadi and Andaman basins on the East coast,” he added, highlighting the upgrade of the National Data Repository to a cloud-based platform for efficient data dissemination.
Addressing regulatory reforms, Minister Puri acknowledged progress in consolidating and simplifying approval processes. “We have reduced 37 approval processes to 18, with 9 processes eligible for self-certification. However, we aim to further expand self-certification to additional processes,” he stated, stressing the importance of reducing delays in regulatory approvals amidst rising import dependency.
Minister Puri announced the formation of a Joint Working Group (JWG) comprising stakeholders from private E&P operators, National Oil Companies, MoPNG, and DGH to address industry concerns and enhance ease of doing business. He directed the DGH to integrate its online portals by year-end to streamline processes further.
Concluding his address, Puri expressed confidence that Urja Varta 2024 would catalyze collaboration and innovation in the energy sector. He invited stakeholders from industry, academia, and government to leverage the platform for contributing to India’s energy security goals.
Following his remarks, Puri inaugurated an Exhibition Gallery and Innovation Centre showcasing technical papers and innovations in the oil and gas sector, underscoring India’s commitment to technological advancement and sustainable energy practices.
Urja Varta 2024, organized by the Directorate General of Hydrocarbons (DGH) over July 11th and 12th, aims to sustainably unlock India’s untapped upstream hydrocarbon resources. The event serves as a crucial platform for dialogue and deliberation on the future of India’s hydrocarbon sector, fostering investment, innovation, partnerships, and sustainable growth.
The conclave brings together leaders, industry experts, service providers, consultants, and academia members from both traditional and non-traditional energy sectors. Highlights include strategic summits with CXOs, panel discussions, B2B meetings, and a technical conference featuring presentations on topics from enhanced oil recovery techniques to digitalization in the sector. The event also showcases innovations from startups, service providers, and E&P companies through an Innovation Center and Exhibition Gallery.
