India’s oil and gas exploration sector is poised for a significant transformation, presenting investment opportunities worth $100 billion by 2030. Oil Minister Hardeep Singh Puri emphasized the need to enhance exploration efforts to reduce the nation’s heavy reliance on oil imports and ensure sustainable and affordable fuel availability.
Speaking at the Urja Varta conference, Puri highlighted the untapped potential in India’s exploration and production (E&P) sector, which is crucial for achieving energy self-sufficiency and sustaining economic growth.
He noted that the country’s sedimentary basins contain approximately 651.8 million tonnes of crude oil and 1138.6 billion cubic meters of natural gas. Despite this, only 10 percent of the sedimentary basin area is currently under exploration, a figure expected to rise to 16 percent by the end of 2024 following the current bidding round.
“The focus of our exploratory endeavors must pivot towards discovering ‘Yet to Find’ resources,” Puri stated. To catalyze investments, the Ministry of Petroleum and Natural Gas (MoPNG) has implemented substantial reforms. The government aims to increase India’s exploration acreage to 1 million square kilometers by 2030. Since the introduction of the Discovered Small Field (DSF) Policy in 2015, around $2 billion has been invested, attracting 29 new players to the field.
One significant development is the reduction of ‘No-Go’ areas, which has opened previously restricted zones for exploration, notably in the Andaman region. Puri also announced the formation of a Joint Working Group (JWG), which includes representatives from private E&P operators, National Oil Companies, MoPNG, and the Directorate General of Hydrocarbons (DGH). This group will assess the ease of doing business, evaluate policies and procedures, and recommend necessary revisions.
The 10th round of bidding for oil and gas assets under the Open Acreage Licensing Policy (OALP) is set to begin next month, with the results for OALP IX being announced concurrently. Despite these efforts, the current exploration acreage is far below the government’s 2030 target, highlighting the need for continued efforts to attract investments and expand exploration activities.
Mporeover, the government plans to upgrade the National Data Repository (NDR) to a cloud-based system, facilitating instant access to seismic, well, and production data. The DGH will also streamline the approval process for annual work programme budgets to ensure timely execution of activities. Indian oil marketing companies are in preliminary discussions with Russia for long-term oil and gas deals, a topic possibly discussed during Prime Minister Narendra Modi’s recent meeting with Russian President Vladimir Putin. In May, Russian crude accounted for 40 percent of India’s oil imports, underscoring the importance of stable and predictable energy relationships.