Latest news with #HydrocarbonExplorationandLicensingPolicy
Mint
27-05-2025
- Business
- Mint
Energy security: India needn't be staring at a $1 trillion import bill
As India races towards economic superpower status, a glaring vulnerability threatens to undermine our progress: our dependence on imported oil and gas. According to the Petroleum Planning & Analysis Cell (PPAC), India's crude oil import dependency has reached 87-88%, with projections suggesting it may exceed 90% by 2030. This trajectory could result in a staggering $1 trillion energy import bill over the next five years. The decline in domestic production makes for disheartening reading. Our crude oil output has fallen from over 36.9 million tonnes in 2015-16 to just 29.7 million tonnes in 2023-24, even as our consumption stays on a relentless upward trajectory. Natural gas presents a slightly better picture, with import dependency at 50-55%, but rapidly rising demand threatens to widen this gap as well. Also Read: Counter-intuitive: Why Opec wants lower oil prices On paper, India holds significant hydrocarbon potential: around 210–215 billion barrels of oil and oil-equivalent gas across 3.14 million sq km of sedimentary basins. Yet, only half this area has been explored. Without aggressive efforts to explore and develop these reserves, this potential will remain untapped. To its credit, India's government has implemented several policy initiatives to stimulate upstream activity. The Hydrocarbon Exploration and Licensing Policy (HELP), introduced in 2016, replaced the previous New Exploration Licensing Policy with a revenue-sharing contract (RSC) model, uniform licensing for all hydrocarbons and promised marketing and pricing freedom for new gas production. The Open Acreage Licensing Policy (OALP) allowed companies to select exploration blocks year-round, rather than waiting for formal bid rounds. While more than 150 blocks have been offered across nine OALP rounds since 2018, the results have been modest. Participation has declined and international oil companies—crucial for capital and technology—remain largely absent. The recent OALP-IX round in 2024 saw only eight blocks awarded, primarily to national oil companies. Also Read: Crude comfort: Let's not lose sleep over India's rising oil dependency A core issue lies in the shift from production sharing contracts (PSCs) to the RSC model. This structure places greater upfront risk on explorers—particularly problematic in under-explored regions where geological uncertainty is high. Countries like Mexico, Brazil and Colombia offer counter examples. Mexico retained PSCs for high-risk areas following its 2013 reforms, attracting over $40 billion in investment. Brazil's PSCs for its pre-salt reserves brought in significant capital and innovation. Even Colombia, with less prospective geology, succeeded by aligning fiscal terms with investor expectations. In India, despite policy improvements on paper, practical challenges persist. Administrative delays, unclear fiscal terms and perceptions of high risk deter global participation. The exploration landscape remains dominated by national firms like ONGC and Oil India Ltd. While their efforts are commendable, a more diverse ecosystem—including international majors and specialized independents—is essential to scale exploration meaningfully. Compounding this is the global energy transition. As decarbonization gains traction, traditional oil and gas investments face increasing scrutiny. Yet, in the context of India's economic growth and our long runway to net-zero by 2070, hydrocarbons will remain critical to India's energy mix for decades. Balancing immediate energy security with long-term sustainability requires strategic intervention for upstream exploration to attract capital. Also Read: Global oil market dynamics are shifting in favour of India's energy plans To address these challenges, India must adopt a multi-pronged and strategic approach. A key step is to revisit the fiscal regime and consider re-introducing PSCs, especially for frontier and high-risk basins where geological uncertainty is high. This model better balances risk and reward, as seen in countries like Mexico and Indonesia, which saw investment rebounds after adopting or enhancing PSC frameworks. Administrative complexities related to cost recovery—often cited as a drawback of PSCs—can be managed through appropriate delegation to tax authorities under the ministry of finance. Also, the National Seismic Programme must be accelerated to map India's sedimentary basins comprehensively. Employing advanced technologies to reduce geological risk will enhance investor confidence and guide better targeted exploration efforts. In tandem, the government should offer more attractive fiscal incentives for technically challenging or less-proven areas. These could include reduced royalty rates, extended exploration timelines, tax holidays and cost recovery allowances. The UK and Norway offer instructive examples of how tailored financial structures can sustain exploration even in mature or complex basins. Administrative streamlining is also essential. Simplifying approval processes and ensuring timely, transparent decision-making would go a long way in attracting investment. A single-window clearance system could help eliminate bottlenecks that frustrate developers and delay projects. To support risk-taking in exploration, particularly by smaller firms and new entrants, the creation of specialized exploration funds with built-in risk-sharing mechanisms could play a catalytic role. These funds could help diversify participation and reduce capital constraints for technically capable but financially constrained players. Additionally, strengthening the capabilities of national oil companies through strategic international partnerships would help accelerate technology adoption and improve operational efficiency. Institutions like the Directorate General of Hydrocarbons should be empowered with greater independence and resources, allowing them to function more effectively as regulators and facilitators of sectoral growth. Also Read: Rely on modern geothermal energy to power our AI ambitions The recent Oilfields Regulation and Development Amendment Act of 2024 modernizes the outdated 1948 law, addressing several industry pain points. It introduces faster dispute resolution, clearer contractual definitions and incentives for enhanced recovery. Importantly, it recognizes new exploration technologies. If the 2024 amendment is effectively implemented, it could reduce contractual uncertainty and unlock stalled projects. However, as global examples such as Kazakhstan show, legislative reforms must be accompanied by consistent administrative execution. Rules, notifications and clarity in application will determine the amendment's impact. The $1 trillion that India may spend on energy imports by 2030 is not just a financial burden, it is a lost opportunity to generate domestic jobs, spur innovation and achieve energy sovereignty. The roadmap is clear; the urgency now lies in execution. This is India's trillion dollar question. Our response will shape the nation's energy future and economic destiny for generations to come. The authors are, respectively, vice president of Pune International Centre; and managing director with Boston Consulting Group and founder member of Pune International Centre.
Time of India
15-05-2025
- Business
- Time of India
OIL starts hydrocarbon exploration in Tripura
Agartala: Oil India Ltd (OIL), the second Maharatna company after ONGC , has initiated its maiden hydrocarbon exploration project in Tripura at Debtamura hill in Gomati district under India's Hydrocarbon Exploration and Licensing Policy (HELP). Earlier this week, OIL officials began their exploration activities following a technical report that indicated substantial hydrocarbon deposits in the area. The commencement was marked by a modest ground-breaking ceremony in the hilly settlement. Officials confirmed their plans to drill the initial well within the Baramura-Debtamura Reserve Forest, situated along the Indo-Bangladesh border. The state's hydrocarbon exploration efforts have encountered obstacles due to extensive forest reserves and transportation challenges. Over the past 53 years, ONGC has established more than 200 wells, primarily across West Tripura, South Tripura, Gomati and North Tripura districts. Currently, it generates 3.5 Million Metric Standard Cubic Meters of gas daily, supporting the 726MW Palatana power facility and the 100MW power station at Monarchak. ONGC supplies gas to Tripura Natural Gas Company Ltd, which operates approximately 12 Compressed Natural Gas (CNG) stations. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like They Lost Their Money - Learn From Their Lesson Expertinspector Click Here Undo The company delivers clean fuel to vehicles and provides piped natural gas to more than 2000 households in Agartala for cooking purposes. While ONGC and several private companies have undertaken exploration activities in specific regions of Tripura with limited success, the arrival of OIL in exploration operations is expected to strengthen the state's economic prospects.
Indian Express
14-05-2025
- Business
- Indian Express
Oil India announces hydrocarbon exploration breakthrough in Tripura with Debtamura 1 well
In a major breakthrough in hydrocarbon exploration in Tripura, Oil India Limited (OIL) has commenced its exploration and production activities in the state by drilling the first foot of its Debtamura 1 well in Gomati district. On 11th May, 2025, Oil India Limited commenced its exploration and production activities in Tripura by spudding the well Debtamura#1 at Loc. TUL-B of DSF-II block AA/ONDSF/TULAMARA/2018. Shri Rupjyoti Phukan, RCE, OIL, Maj General (Retd.) Praveen Mathur, Advisor – Security (DGH),… — Oil India Limited (@OilIndiaLimited) May 13, 2025 The company wrote on X, 'On 11th May, 2025, Oil India Limited commenced its exploration and production activities in Tripura by spudding the well Debtamura#1 at Loc. TUL-B of DSF-II block AA/ONDSF/TULAMARA/2018.' 'The well Debtamura#1 is located approximately 120 KM from Agartala, inside Baramura- Debtamura Reserve Forest, Gomati district, near the Indo-Bangladesh International border,' the post further read. Oil India Limited said Debtamura 1 would be the 'first well drilled by any oil and gas company in the state of Tripura', under the central government's Hydrocarbon Exploration and Licensing Policy regime. Oil India Limited added that hydrocarbon exploration and production activities in this block were beset with a myriad of challenges. These included undulated and thick vegetated terrain, challenging surface logistics along narrow hilly roads, and predominant and extended monsoon season causing flooding and landslides due to younger sediments dissected by lineaments, which badly damaged the well plinths and the approach road. 'Overcoming all these, the spirit of all Oil Indians speaks to its moment and our aspiration of Atmanirbhar Bharat,' the company added. Rupjyoti Phukan, RCE, OIL; Maj General (Retd) Praveen Mathur, Advisor – Security (DGH); Directorate of Industries and Commerce Joint Director Sutirtha Paul; Executive Director and HoD, Frontier Basin Project, OIL, Chitra Mohan Bora; Arunav Baruah, Chief General Manager (FB), OIL; Pankaj Kumar Biswas, General Manager, Gas Authority of India Limited (GAIL); and other senior OIL officials attended the spudding at the location.
The Hindu
12-05-2025
- Business
- The Hindu
Fishers oppose hydrocarbon project at Wadge Bank in Kanniyakumari
Opposition to the proposed hydrocarbon exploration project in the waters of Kanniyakumari has increased among fishers in the region. According to them, though the project had been planned at 35 nautical miles from the shore, the designated area was a vital fishing ground. The Union Ministry of Petroleum and Natural Gas had issued a notice inviting bids under the Hydrocarbon Exploration and Licensing Policy for exploration of oil and natural gas from three areas in South of Cape Comorin, covering 27,154.80 sq km. Of the three proposed sites, one spans 9,514.63 sq km and the other two, 9,844.72 sq. km and 7,795.45 sq. km respectively. Marine area The region selected for exploration includes the Wadge Bank — a marine area in south of Cape Comorin, rich in fishery resources. Spanning approximately 10,000 sq km, it has long served as an abundant fishing ground. Fishermen associations fear that implementing the project in such a sensitive area would impact the livelihood of fishers from Kanniyakumari, Tirunelveli, Thoothukudi, and Ramanathapuram districts in Tamil Nadu and parts of Kerala, besides harming one of the most ecologically valuable littoral zones in the region. C. Berlin of Neithal Makkal Iyakkam said, 'The place selected for the project falls under the Central government zone, but that does not exempt authorities from consulting the local fishing community....' He further said that fishers who are dependent on Wadge Bank would be affected the most due to the project. Small-scale fishers would be forced to sail longer distances in search of fishing grounds, Mr. Berlin said, urging the government to revoke the proposed project. A Journal on Petroleum and Environmental Biotechnology, released by the Department of Environmental Sciences, Resources and Studies of University of Alaska Fairbanks, highlighted the environmental impacts of hydrocarbon exploration. According to it, drilling and production operations could release pollutants into air and water. Meanwhile, fishermen associations convened a meeting in Nagercoil on Sunday to raise awareness on the potential impact of the project. At the meet, fishers proposed that a memorandum be submitted to the Ministry of Petroleum and Natural Gas, and planned protests in the days to come. Justin Antony, president of International Fishermen Development Trust, said Wadge Bank was a natural barrier that protected the region from disasters. The implementation of the project in south of Cape Comorin could weaken this barrier, he feared. S. Rajeshkumar, MLA from Killiyoor constituency, said a plea pertaining to the project was already submitted in the Assembly and the Tamil Nadu government had not yet granted a no-objection certificate. According to him, there was neither any 'major prior intimation' about the project from the Centre nor a public hearing. He emphasised that the Centre revoke the project.
The Hindu
11-05-2025
- Politics
- The Hindu
Fishers decry hydrocarbon project in Wadge Bank
Opposition to the proposed hydrocarbon exploration project in the waters of Kanniyakumari has increased among fishers in the region. According to them, though the project had been planned at 35 nautical miles from the shore, the designated area was a vital fishing ground. The Union Ministry of Petroleum and Natural Gas had issued a notice inviting bids under the Hydrocarbon Exploration and Licensing Policy for exploration of oil and natural gas from three areas in South of Cape Comorin, covering 27,154.80 sq km. Of the three proposed sites, one spans 9,514.63 sq km and the other two, 9,844.72 sq km and 7,795.45 sq km respectively. The region selected for exploration includes the Wadge Bank — a marine area in south of Cape Comorin, rich in fishery resources. Spanning approximately 10,000 sq km, it has long served as an abundant fishing ground. Fishermen associations fear that implementing the project in such a sensitive area would impact the livelihood of fishers from Kanniyakumari, Tirunelveli, Thoothukudi, and Ramanathapuram districts in Tamil Nadu and parts of Kerala, besides harming one of the most ecologically valuable littoral zones in the region. C. Berlin of Neithal Makkal Iyakkam said, 'The place selected for the project falls under the Central government zone, but that does not exempt authorities from consulting the local fishing community....' He further said that fishers who are dependent on Wadge Bank would be affected the most due to the project. Small-scale fishers would be forced to sail longer distances in search of fishing grounds, Mr. Berlin said, urging the government to revoke the proposed project. A Journal on Petroleum and Environmental Biotechnology, released by the Department of Environmental Sciences, Resources and Studies of University of Alaska Fairbanks, highlighted the environmental impacts of hydrocarbon exploration. According to it, drilling and production operations could release pollutants into air and water. Meanwhile, fishermen associations convened a meeting in Nagercoil on Sunday to raise awareness on the potential impact of the project. At the meet, fishers proposed that a memorandum be submitted to the Ministry of Petroleum and Natural Gas, and planned protests in the days to come. Justin Antony, president of International Fishermen Development Trust, said Wadge Bank was a natural barrier that protected the region from disasters. The implementation of the project in south of Cape Comorin could weaken this barrier, he feared. S. Rajeshkumar, MLA from Killiyoor constituency, said a plea pertaining to the project was already submitted in the Assembly and the Tamil Nadu government had not yet granted a no-objection certificate. According to him, there was neither any 'major prior intimation' about the project from the Centre nor a public hearing. He emphasised that the Centre revoke the project.
