Govt to form JWG comprising PSUs, private companies to review India’s E&P policies: Puri

Hardeep Singh Puri Announces Formation of Joint Working Group to Review and Revise E&P Policies

New Delhi: Minister for Petroleum and Natural Gas, Hardeep Singh Puri, has announced the establishment of a Joint Working Group (JWG) tasked with reviewing and recommending revisions to Exploration and Production (E&P) policies to further enhance the ease of doing business. The JWG will include representatives from private E&P operators, National Oil Companies, the Ministry of Petroleum and Natural Gas (MoPNG), and the Directorate General of Hydrocarbons (DGH). The group will evaluate current policies, procedures, and their effectiveness, with the aim of suggesting necessary revisions. It is expected to submit its recommendations within eight weeks.

During his address at the Urja Varta 2024 conference organized by the DGH, Puri emphasized the critical need to boost exploration efforts and domestic production to reduce the country's reliance on oil and gas imports and fully exploit available reserves.

Currently, only 10 percent of India's sedimentary basin area is under exploration. However, following the forthcoming Open Acreage Licensing Policy (OALP) rounds, this figure is projected to rise to 16 percent by the end of 2024.

India's E&P Sector: A $100 Billion Investment Opportunity by 2030

Puri highlighted that the Exploration and Production (E&P) sector presents investment opportunities worth up to USD 100 billion by 2030. Despite significant progress, only a fraction of the sedimentary basin is explored. With upcoming OALP rounds, exploration acreage is expected to expand significantly. By 2030, India aims to increase its exploration acreage to 1 million square kilometers, focusing on discovering new resources.

Rs 7,500 Crore Investment in New Seismic Data Acquisition

The government is investing Rs 7,500 crores into acquiring new seismic data, including data for the Exclusive Economic Zone (EEZ), financing stratigraphic wells, and conducting aerial surveys in challenging terrains. This investment will enhance the geo-scientific data available for the Kerala-Konkan basin and the Mumbai offshore basin on the West Coast, as well as the Mahanadi and Andaman basins on the East Coast. Additionally, the National Data Repository is being upgraded to a cloud-based system by the DGH, enabling immediate access to seismic, well, and production data.

Enhancing the Ease of Doing Business in E&P

Puri noted that the government has already streamlined 37 approval processes into 18, with 9 processes now eligible for self-certification. However, further reforms are needed. Expanding self-certification to additional processes and reducing delays in approving field development plans and regulatory permissions are crucial as the nation works to decrease import dependency.