New measures to up indigenous oil production

Besides ensuring ways for offering of exploration blocks through a bidding process, the new policy measures allow ‘Non-exclusive Multi-Client Speculative Survey’ for assessment of unexplored sedimentary basins The Dollar Business Bureau

Government, through its new policy measures, aims to re-assess hydrocarbon resources, implement technology for discovery and maximization of production from mature fields

Minister of State (I/C) for Petroleum & Natural Gas Dharmendra Pradhan informed about new policy reforms in a written reply to Rajya Sabha on Wednesday.

With a view to enhance the country’s energy capacity, the Union Petroleum Ministry has announced key measures which aim to boost exploration activities and indigenous oil and natural gas production. An official announcement in this regard was made by the Minister of State (I/C) for Petroleum & Natural Gas Dharmendra Pradhan, in a written reply to Rajya Sabha on Wednesday. New measures intend to encourage National Oil Companies (NOCs) by providing them a policy for exploration and exploitation of Shale Gas/ Oil resources, on a nominated basis. Easing ways for exploration, the new policy also allows miners/companies to explore the areas that are under mining lease, post the expiry of exploration period. Besides ensuring ways for offering of exploration blocks through bidding process, the new policy measures allow ‘Non-exclusive Multi-Client Speculative Survey’ for assessment of unexplored sedimentary basins. Under a plan to ensure ‘early monetization of discoveries’, the Ministry came up with a new framework providing relaxations, extensions and clarifications at the development and production stage under the Production Sharing Contract (PSC) regime for early monetisation of hydrocarbon discoveries. Appraisal of about 1.5 million sq.km of un-appraised area of the Indian Sedimentary Basins, re-assessment of hydrocarbon resources, implementation of technology for discovery and maximization of production from mature fields & proper testing mechanisms for discoveries under the New Exploration & Licensing Policy (NELP), setting up of a National Data Repository & improving recovery factor, are among other measures taken by the Ministry under its new policy to enhance indigenous oil production. With regards to pricing, the Finance Minister had said in his Budget speech that the fall in international crude oil prices has helped the Indian economy. Following that Finance Minister’s statement, the Oil Minister had told Rajya Sabha on Wednesday that the government has passed the 50% of the benefit of the reduced international crude oil prices to the consumers and kept the remaining half for investments in the social sectors like farming, infrastructure and health’. Responding to the Opposition’s accusation that the government has been ‘appropriating’ and ‘not passing’ the benefit of the fall in international crude oil prices to consumers, Oil Minister Dharmendra Pradhan on Wednesday had said, “While the government passed on 49% of the benefits of the fall in global crude prices to consumers, it has given 41% of fall in diesel prices to them.” Will have to see how the new measures will boost the domestic oil and petroleum industry, amidst fluctuating international oil prices.

March 03, 2016 | 03:00pm IST

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The Dollar Business Bureau - Mar 03, 2016 09:26 IST

New measures to up indigenous oil production

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