LIVE TV DownloadNews18 App
News18 English
»
2-min read

India Tightens Scrutiny of Oil, Gas Fields to Boost Output

India has intensified monitoring of oil and gas fields handed to state explorers as the South Asian nation seeks to cut dependence on imports and boost local output, oil minister Dharmendra Pradhan said on Wednesday.

Reuters

Updated:June 29, 2017, 8:14 AM IST
facebookTwittergoogleskypewhatsapp
India Tightens Scrutiny of Oil, Gas Fields to Boost Output
A worker holds a fuel nozzle at a petrol pump. (image: Reuters)
Loading...
New Delhi: India has intensified monitoring of oil and gas fields handed to state explorers as the South Asian nation seeks to cut dependence on imports and boost local output, oil minister Dharmendra Pradhan said on Wednesday. India, the world's third-biggest oil importer, ships in about 80 percent of its needs and Prime Minister Narendra Modi set a target in 2015 to cut dependence on oil imports to 67 percent by 2020.

The country's oil and gas output has been stagnant for years while the nation's fuel demand is rising with its economic expansion, hitting federal finances with an import bill worth billions of dollars. The fields, given to Oil and Natural Gas Corporation and Oil India Ltd prior to the opening up of the sector to private players, account for about 70 percent of the country's oil and gas output.

"We have now started monitoring those fields and have given new benchmarks to the National Oil Companies to increase production," Pradhan said at an industry event. The global benchmark of recovery of oil from reservoirs is 35-40 percent and for gas is 55-70 percent, he said.

"In India, the current recovery factors of ONGC and Oil India for crude oil are as low as 27 percent and 23 percent. In the case of natural gas, it is 54 percent and 43 percent for ONGC and Oil India," Pradhan said.

Modi's government has been taking steps to unlock the country's vast reserves and boost foreign investment in the sector. The relaxed rules, among others, allow pricing and marketing freedom to contractors. Encouraged by the reforms, BP and Reliance Industries earlier this month announced a plan to invest $6 billion in reviving a deepwater gas field off the country's east coast.

"A robust captive market is India's strength, and for energy security, we have brought these reforms," Pradhan said.

India on Friday announced the launch of a national data repository (NDR) and open acreage licensing program, giving freedom to firms to carve out areas they want to drill.

However, the delineated area will be put up for auction.

India aims to open up 2.8 million sq kms of the country's sedimentary basins through the open acreage policy to accelerate exploration and production.

Catch the biggest newsmakers and the biggest newsbreaks on CNN-News18, the only news destination. Keep watching CNN-News18 at just 50 paise per month. Contact your cable/DTH operator now!

*Rental/capacity fee of Rs. 130/- as charged by cable/DTH operator may apply. **GST extra.
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Sun Pharma 390.75 -8.39
Reliance 1,184.35 4.40
Jet Airways 281.20 -1.44
Yes Bank 198.60 -1.44
HUL 1,744.10 -0.42
Company Price Change %Gain
Sun Pharma 390.75 -8.52
Reliance 1,182.95 4.34
ICICI Bank 371.90 -0.39
Jet Airways 281.35 -1.21
Yes Bank 198.25 -1.59
Top Gainers
Company Price Change %Gain
Reliance 1,184.35 4.40
Wipro 346.15 3.21
Kotak Mahindra 1,240.20 1.66
Hindalco 208.80 1.36
Adani Ports 399.30 1.22
Company Price Change %Gain
Reliance 1,182.95 4.34
Kotak Mahindra 1,237.35 1.41
HCL Tech 964.50 1.02
Asian Paints 1,401.30 0.85
ONGC 146.25 0.79
Top Losers
Company Price Change %Gain
Sun Pharma 390.75 -8.39
Bharti Airtel 311.15 -6.29
GAIL 322.15 -3.08
Larsen 1,317.90 -2.09
HPCL 239.50 -1.92
Company Price Change %Gain
Sun Pharma 390.75 -8.52
Bharti Airtel 310.95 -6.42
Larsen 1,318.25 -2.07
Axis Bank 664.30 -1.77
Yes Bank 198.25 -1.59

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results