Private Sector Participation, Global Alliances To Drive Oil Exploration And Production In India, Say Experts
Unlocking untapped reserves and fostering bold private sector participation are key to meet increasing demand and reshape India's energy landscape.
More private participation and global alliances will help ramp up domestic oil and gas production, reduce imports and bridge the widening demand-supply gap in the country, according to energy experts. The experts said that as India’s oil demand is projected to increase by 40 percent to 6.7 million barrels per day (mb/day) by 2030, local production needs to be ramped up to meet the widening fuel demand-supply gap.
Unlocking untapped reserves and fostering bold private sector participation are key to meet increasing demand and reshape India's energy landscape. Greater involvement of the private sector in this capital and technology intensive, high-risk business, with long lead time, is extremely crucial because the Indian sedimentary basin remains largely unexplored—only 10% has been explored so far, say experts.
Amitava Sengupta, Chairman, THIINK GAS, Distribution Private Limited and former Director, Finance, Petronet LNG, said “It is high time for the government to focus on producing more and more affordable domestic gas because the last mile infrastructure is rapidly getting built up. It will also help in meeting the government’s objective of increasing the natural gas proportion from 6% to 13% in the total energy basket.”Hence, India drive for Atmanirbhartha in this critical area calls for an immediate ramp up of its E&P activities through greater participation of the private sector and global majors, he added.
It will create a more competitive environment, encourage companies to innovate and develop new technologies to improve efficiency and reduce costs, which will contribute to a more dynamic and sustainable oil and gas sector.
Krishan G Insan, an Energy Expert, a Fellow of European University Institute, Italy and Global Co-Chair of Sustainability Network of Chevening Alumnus said, “The success story of the private players-- both domestic and foreign majors—in the Indian oil and gas exploration and production (E&P) sector has already been well established under the NELP regime.”
"To ensure their greater participation, the government has come out with the OALP scheme, which marks an important transition from cost sharing to a revenue-sharing model, a long-term demand of the players. The government has taken several measures like HELP and the Oilfields (Regulations and Development) Amendment Bill, 2024, to create a conducive environment for E&P sector.” He further added.
The petroleum ministry prepares to award more blocks under the 10th round of the Open Acreage Licensing Programme (OALP) to oil and gas exploration and production (E&P) companies to reduce the import dependence in this critical sector. OALP allows investors to carve out blocks of their choice based on available data offered through formal bidding to ramp up exploration and production from these fields.