US$2.86 billion E&P projects underway
The Indian public sector companies have already placed November crude oil supplies with Iran, calling it a historically key supplier.
“Our public sector companies have already placed orders for the month of November with Iran,” said Sunjay Sudhir, joint secretary for international cooperation at the Ministry of Petroleum & Natural Gas.
“Iran, historically, has been a key supplier of crude for India,” said Sudhir, underlining the importance of crude oil supply from the Middle East which accounts for 65% imports.
Iraq, Saudi Arabia and Iran are India’s top three crude oil suppliers, followed by Venezuela and Nigeria as India diversify its source of crude supplies.
“We are guided by our consideration for energy security,” said Sudhir emphasizing the importance of sourcing crude independently.
Nevertheless, Indian officials are in talks with the US on waiver in dealing with Iran, relating to Washington’s sanctions.
India imports over 80% of its crude oil requirements.
It has imported over 30 million barrels of US crude beginning Octo 2017.
Sudhir pointed to the constraints on the US infrastructure side.
The American crude shipment is choked at pipelines and terminals.
India is also offering hydrocarbon prospecting acreages to boost Indigenous oil and gas production.
The Directorate General of Hydrocarbons (DGH) presented a wide range of investment opportunities in the upstream oil and gas sector to investors in Singapore on 26 Oct 2018.
Officials highlighted the ongoing US$2.86 billion investment underway to double gas production and drill more than 120 exploration wells over the next 4-5 years.
Additional US$786 million is committed to drill over 120 exploration wells in the Indian basins.
DGH delegation, led by Director General Dr V P Joy, presented a wide range of opportunities to participate in the Indian hydrocarbon exploration and exploitation.
Among new offers are the new Improved Oil Recovery and Enhanced Oil Recovery concepts, introduced earlier this month, which offers flexible terms for exploiting existing discoveries.
“Investments in capital goods for hydrocarbon production is recoverable from earnings,” assured Dr Joy while listing out incentives under the new upstream sector policies.
The US$2 billion investment will nearly double the natural gas production to 60 billon cu m a year by 2022 from the current 33 bcm a year.
The presentation was for Bid Round II under the Discovered Small Field Policy (DSF) and Open Acreage Licensing Policy (OLAP).
Fourteen blocks under OLAP and 25 contract areas covering 59 discovered oil and gas fields under DSF Bid Round II are being offered under. The fields are spread over 3,000 sq km with prospective resource base of over 190 million metric ton of oil equivalent.
The DSF policy is aligned to Hydrocarbon Exploration and Licensing Policy (HELP), which adopts the Revenue Sharing Model as a step towards improving the Ease of Doing Business in Indian E&P sector, said the DGH in a press statement released here Friday.
It comes with attractive fiscal terms like reduced royalty rates and no cess, single license for all hydrocarbons, pricing and marketing freedom, freedom to exploration throughout contract period, no signature bonus and provision for sharing of common facilities, it said.
Over 175 participants from E&P companies, service providers, investors and entrepreneur attended the Singapore roadshow covering the upstream acreage.
The Singapore roadshow was second after the 4 Oct Russia event and will continue in London and Abu Dhabi. fiinews.com