Latest news with #OALP
Hans India
15 hours ago
- Business
- Hans India
Policymakers need to be vigilant of evolving global crude price dynamics impact: RBI
New Delhi: While active government intervention has contained spillover to domestic oil prices, policymakers need to be vigilant and cautious of the direct and indirect impact of the evolving global crude price dynamics through continuous assessment, given India's increasing dependence on crude oil imports, the Reserve Bank of India (RBI) has stressed. In this regard, government policies would play a pivotal role in containing the impact, said the RBI in a paper titled 'Revisiting the Oil Price and Inflation Nexus in India' in its latest Bulletin. 'Specifically, reducing crude oil dependence by promoting alternate non-fossil energy usage and regional free trade agreements and bilateral treaties with major oil exporters could be explored for oil imports at favourable prices,' the paper emphasised. In recent years, India's net import demand for crude oil has remained strong, fuelled by consumption growth and robust economic activity. Oil prices and their inflationary impact is a key metric that sensitise monetary policy formulation in economies vulnerable to oil price shocks, particularly net oil importers, where rising oil prices can significantly dampen economic growth and stoke inflation pressures. 'The direct impact of international crude oil price changes to domestic petrol and diesel inflation, and indirectly through transportation and input costs, is evident in the post-deregulation period albeit at a subdued level as government intervention by taxes, cess and regulation of oil marketing companies has often muted the impact,' the RBI paper noted. The results of the empirical analysis suggest that a 10 per cent increase in international crude oil prices could raise India's headline inflation by around 20 basis points on a contemporaneous basis. 'Although the pass-through to retail prices has remained contained with active government intervention, increasing dependence on crude oil imports may have inflationary consequences in the long run, warranting constant vigilance and careful monitoring of its potential impact,' said the RBI paper. Meanwhile, India is taking steady, confident steps towards oil self-sufficiency and under Prime Minister Narendra Modi's leadership, the country is securing its energy future, step by step, Petroleum Minister Hardeep Singh Puri said recently. While 1 million square km offshore area is now open for oilfield exploration, 99 per cent of 'No-Go' areas have been cleared. The oil and gas blocks being offered under the Open Acreage Licensing Programme (OALP) have already garnered attention from global and domestic energy players, and Round X is expected to set new benchmarks for participation and investment.
Mint
17-07-2025
- Business
- Mint
ONGC, bp tie up to drill stratigraphic wells in offshore sedimentary basins
New Delhi: State-run Oil and Natural Gas Corp. Ltd (ONGC) on Thursday signed a memorandum of understanding (MoU) with global energy major bp to collaborate on drilling stratigraphic wells in four offshore sedimentary basins in India—Andamans, Mahanadi, Saurashtra and Bengal. The MoU was signed during the second edition of Urja Varta 2025, a conclave on upstream oil and gas sectors organized by the Directorate General of Hydrocarbons. A stratigraphic well is drilled specifically to obtain geological information rather than for oil or gas production. "ONGC has signed a strategic Memorandum of Understanding (MoU) with bp_plc on 17 July 2025, to collaborate on drilling stratigraphic wells in India's Category II & III offshore sedimentary basins: Andaman, Mahanadi, Saurashtra, and Bengal. This partnership will enhance geological understanding and unlock untapped hydrocarbon potential, strengthening India's long-term energy security," ONGC said in a tweet. Commenting on the development Kartikeya Dube, head of country, bp India and senior vice president, bp group said: "We are excited to underpin our existing alliance with ONGC in this project of national and strategic significance. We believe drilling of new stratigraphic wells will be very valuable and can lead to a new understanding and potential." He added that bp's experience in deep water exploration supported by new seismic technologies would be of great assistance during the evaluation and subsequent drilling of stratigraphic wells. In the ninth round of auctions under Centre's Open Acreage Licensing Policy (OALP), ONGC tied up with Reliance Industries Ltd and bp plc for a block in the Saurashtra Basin. This marked the entry of London-headquartered bp into India's upstream exploration & production (E&P) space. In the ninth round ONGC secured 15 blocks—four in partnership with other players, and 11 independently. In February this year ONGC had signed an MoU with bp for collaboration in exploration and production of oil and gas, energy trading and other segments in the energy business both in India and internationally. The state-run energy major's shares on the BSE closed at ₹ 243.90 on Thursday, higher by 0.41% from its previous close.
Mint
17-07-2025
- Business
- Mint
India not worried about possible US sanctions on Russian oil imports: petroleum minister
New Delhi: With US President Donald Trump warning of sanctions on countries that import Russian oil, union minister for petroleum and natural gas Hardeep Singh Puri said India is not worried about any such penalties and will navigate any eventuality as there is enough supply in the market. Addressing Urja Varta 2025, an annual upstream oil and gas conclave, Singh added that more oil would come in, easing prices further. Trump recently said the US could impose 100% tariffs on Russia and 'secondary tariffs' on countries importing its oil – mainly China and India – if Moscow didn't agree to a deal to end the Ukraine war in 50 days. Responding to a question on India's likely measures in case secondary sanctions were imposed on Russian oil imports, he said, 'My my own view is the price of oil will come down. It will come down only because there is more oil available in the international market. There is more oil coming on the global market from the western hemisphere. I mean countries such as Brazil, Guyana and Canada. They're not even OPEC+ members. I'm not worried at all. If something happens, we'll deal with it.' He added that India felt 'no pressure' and had enough supply options to ensure uninterrupted availability even in turbulent times. Citing estimates, Singh said Russian oil accounted for about 10% of global oil production and that if India and other countries didn't buy it at all, prices could shoot up to $130-140 a barrel. China and India are the largest importers of Russian oil. After the West sanctioned Russia and imposed price caps on its oil in 2022 over the invasion of Ukraine, India increased imports of Russian oil as the country offered steep discounts. In February 2022, at the start of the Russia-Ukraine war, Russian oil comprised of 0.2% of India's oil imports. It has now increased to around 36%. India has maintained that its strategy for sourcing energy prioritises its national interest and that of Indian consumers. 'We will buy from wherever we have to because the prime minister's commitment is to the Indian consumer,' Puri said during the fireside chat. The minister also said India has significantly diversified its sources, buying from nearly 40 countries compared to 27 earlier, and is ready for any global supply disruption, including a hypothetical closure of the Strait of Hormuz. Speaking about efforts to boost domestic oil and gas production, he said the government has opened up 257,000 square kilometres, the biggest ever offering, for bidding under the 10th round of the open acreage licensing policy (OALP). 'We had 3.5 million sq km of sedimentary area. We've already opened up 1 million sq km, including previously declared no-go zones,' Puri said. Assuring Indians of adequate energy supplies even during geopolitical turbulence, he said during the recent Middle East conflict and concerns of a blockade of the Strait of Hormuz, Indian state-run oil marketing companies had 21 days of inventory.
Time of India
17-07-2025
- Business
- Time of India
No pressure on India on Russian crude, will buy crude from wherever required to meet demand: Oil Minister Puri
New Delhi: India's oil minister Hardeep Singh Puri today asserted the country will continue sourcing oil from "wherever necessary" to safeguard its interests and ensure energy security. This comes days after U.S. President Donald Trump's statement that countries purchasing Russian exports could face sanctions if Moscow fails to reach a peace agreement with Ukraine within 50 days Speaking at Urja Varta 2025, a flagship upstream oil and gas conclave of the Directorate General of Hydrocarbons (DGH), Puri said the country feels 'no pressure' and has enough supply options to ensure uninterrupted fuel availability even in turbulent times. 'We will buy from wherever we have to because the Prime Minister's commitment is to the Indian consumer,' Puri said at a public discussion on India's energy roadmap. Responding to the US threat, he added, 'I don't feel any pressure in my mind, and I don't think my boss's mind is wired to feel any pressure.' Russia now supplies around 35 per cent of India's crude oil, up from just 0.2% before the Ukraine conflict in early 2022. The minister said India has significantly diversified its sources—buying from 40 countries now compared to 27 earlier—and is ready for any global supply disruption, including a hypothetical closure of the Strait of Hormuz. 'We have 21 to 25 days of oil stock. Even if the Strait is closed for a few days, we can manage. I'm not unduly worried,' he said, adding that more oil is entering the global market from new players such as Brazil, Guyana and Canada. Puri also dismissed concerns over a potential price cap breach on Russian crude. 'Russian oil was never sanctioned, only capped. If we get oil below the cap, we will buy it. Why not? It benefits the consumer,' he said. India currently imports energy worth $15 billion from the US and may increase it to $25 billion. The minister confirmed LPG imports from the US account for about 10% and pointed to new contracts under discussion with Norway's Equinor and others. Amid sanctions on Iran and Venezuela, Puri said oil from those countries continues to reach the market, though India has refrained from buying since 2019 due to international restrictions. 'If it's a sanction we have agreed to, we won't violate it." Despite growing global pushback against fossil fuels, India is doubling down on domestic oil and gas exploration. The government has opened up 2.57 lakh square kilometres—its biggest ever offering—for bidding under the 10th round of the Open Acreage Licensing Policy (OALP). A total of 22 states are participating in the exploration drive. 'We had 3.5 million sq km of sedimentary area. We've already opened up 1 million sq km, including previously declared no-go zones,' Puri said, attributing the shift to clearance from defence and scientific agencies. 'Earlier, DRDO and Navy would say, 'no-go'. Now the PM has said, open it up.' The government is also pushing for more private and global participation in oil exploration by compensating technical partners for surveys and offering first right of refusal on finds. 'Petrobras is working with Oil India. We will pay them for services, and if oil is struck, they get priority,' he said. The changes have been formalised under the revamped Overhaul of Oilfields Regulation and Development Act, replacing the 1948-era law. The new law introduces a single permit system, stability in lease conditions, and removes archaic clauses that hindered investment. Puri said, 'It's not about changing laws in Shastri Bhavan. We did wide stakeholder consultations, took global best practices, and made the changes.' On enforcement, Puri said the government is taking action against firms that won blocks but failed to develop them. 'Many companies sat on unrealistic bids for 10–12 years. We're now cancelling those,' he said. Asked if global majors will invest under the new regime, Puri said the investor mood has changed. 'Earlier, no one wanted to explore. Now they see India as a long-term opportunity. The economic centre of gravity is shifting. India is growing at 6.5%—much faster than the economies we've overtaken.' Though over 85 per cent of India's crude demand is still met through imports, Puri said the ratio may gradually fall with rising domestic production, higher ethanol blending, and the adoption of green hydrogen and EVs. 'We were at 1.4 per cent ethanol blending, now we're at 20 per cent. Green hydrogen tenders are going below $4/kg. These changes will alter the energy basket,' he said. Asked about the use of AI in oil sector operations, Puri said its adoption is growing in refineries and exploration, though data is still being compiled for a clearer impact assessment. In the final stretch of the conversation, the minister addressed criticism of India's continued investment in oil exploration. 'In 1976, Shell predicted oil would peak by 2000. Today, no one will even say 2030 or 2040. Even as we transition, we need fossil fuels to bridge the gap. That's the reality.'
India.com
11-07-2025
- Business
- India.com
India's purchase of Russian oil helped bring down global prices: Hardeep Puri
New Delhi: Minister of Petroleum and Natural Gas Hardeep Singh Puri said on Friday that India's purchases of Russian crude oil had helped to bring down global energy prices to stable levels. In an interview with a foreign news channel, Puri said, 'Russia is one of the largest crude producers with over 9 million barrels/day. Imagine the chaos if this oil, amounting to about 10 per cent of the global oil supply of around 97 million, vanished from the market. It would have forced the world to reduce its consumption, and since the consumers would be chasing reduced supplies, the prices would've spiralled to over $120-130.' 'India, under the leadership of Prime Minister Narendra Modi, has been a net positive contributor to global energy price stability, while at the same time we successfully navigated the trilemma of energy availability, affordability and sustainability,' the minister said. He explained that Russian oil was never under global sanctions. 'Sensible decision makers around the world were aware of the realities of global oil supply chains and how India was only helping the global markets by buying discounted oil under a price cap from wherever we could,' the minister said. 'Some commentators who do not have an understanding of the dynamics of energy markets pass unnecessary judgments on our policies,' he added. The minister pointed out that India continues to provide clean cooking gas to 330 million households in the country at the lowest prices in the world, while it provides universal clean cooking to more than 103 million beneficiary families under the PM Ujjwala Scheme at just 0.4 dollars/kg or just 7-8 cents/day. Meanwhile, the minister also said, in a statement on X, that India plans to explore and drill for oil and gas with a whole new momentum across 2.5 lakh sq km in Round 10 under the Open Acreage Licensing Policy (OALP). He highlighted that India's target is to increase the country's exploration acreage to 0.5 million sq km by 2025 and 1.0 million sq km by 2030. Being close to discovering a Guyana-scale oilfield in the Andaman Sea, India is in the midst of one of the most ambitious plans to enhance the efforts to drill for more and further enhance hydrocarbons exploration in the country, he added.
