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The Hindu
2 days ago
- Business
- The Hindu
A strategy fuelled by vision, powered by energy
A few days ago, India overtook Japan to become the world's fourth largest economy. Since 2014, under Prime Minister Narendra Modi's leadership, India's GDP has more than doubled to $4.3 trillion in 2025. This is the result of a decade-long strategy centred on reforms, resilience and relentless pursuit of self-reliance. India has not only become the world's fastest-growing major economy but is also a strategic force. The energy sector, integral to this rise, has undergone a structural transformation during the first year of Modi 3.0, building on 10 years of foundational change. More importantly, India's growth rate of 6.7% in the last quarter places it on a fast trajectory that none of the other countries can remotely hope to achieve in the coming years. Outlining an energy strategy India is now the third largest energy and oil consumer, fourth-largest refiner, and fourth-largest LNG importer globally. With energy demand expected to grow two and a half times by 2047 and 25% of incremental global demand set to come from India, the road map is clear: energy security is development security. The Modi government's energy strategy addresses the energy trilemma of availability, affordability, and sustainability through a four-pronged approach — diversification of sources and suppliers, expansion of domestic production, transition to renewables, and affordability. In the upstream oil and gas sector, India's exploration acreage has doubled from 8% in 2021 to 16% in 2025. With a goal of covering one million square kilometres by 2030, the government aims to unlock 42 billion tonnes of oil and oil-equivalent gas. This expansion has been enabled by landmark reforms such as the reduction of 'No-Go' areas by 99%, streamlined licensing through Open Acreage Licensing Policy (OALP) rounds, and attractive pricing incentives for new gas wells. The revised gas pricing mechanism — linking prices to 10% of the Indian crude basket and offering a 20% premium for new wells — has enhanced gas availability for city gas networks and industrial usage. To reduce costs and accelerate monetisation, new revenue-sharing contracts allow shared infrastructure among Exploration and Production (E&P) players. Technological and geophysical efforts have complemented policy reforms. The National Seismic Programme, Mission Anveshan, airborne gravity gradiometry (AGG) surveys, and continental shelf mapping have expanded data and exploration confidence, especially in frontier basins such as the Andamans, the Mahanadi, and the Cauvery. The Oil and Natural Gas Corporation Limited (ONGC) and Oil India have together made over 25 hydrocarbon discoveries across the Mumbai Offshore, Cambay, Mahanadi, and Assam basins in the last four years. Noteworthy among these are the Suryamani and Vajramani wells on the west coast offshore and the Utkal and Konark fields on the east coast deep waters. These discoveries add over 75 MMtoe (million metric tonnes of oil equivalent) and 2,700 MMSCM (million metric standard cubic metres) of gas to India's reserves. Collaborations with global majors are bearing fruit. ONGC's partnership with bp is projected to boost output from Mumbai High by 44% for oil and 89% for gas. A data centre at the University of Houston now facilitates access to India's exploration datasets for international investors. Downstream infrastructure has seen parallel expansion. India now operates 24,000 kilometres of product pipelines, nearly 96,000 retail outlets, and has significantly strengthened its strategic reserves and LPG storage. Over 67 million people visit petrol pumps daily, which is testimony to the scale and efficiency of India's fuel supply ecosystem. India's city gas network has grown from 55 geographic areas in 2014 to 307 in 2025, with piped natural gas (PNG) connections up from 25 lakh to 1.5 crore and over 7,500 compressed natural gas (CNG) stations in operation. Unified pipeline tariffs and city gas expansions have ensured affordable access even in distant States. The focus of the green strategy Biofuels have emerged as a cornerstone of India's green strategy. Ethanol blending in petrol has surged from 1.5% in 2013 to 19.7% in 2025. Blending quantities have expanded from 38 crore litres to 484 crore litres. This has saved 1.26 lakh crore in foreign exchange, reduced emissions by 643 lakh MT, and paid ₹1.79 lakh crore to distillers and over ₹1 lakh crore to farmers. Feedstock diversification ranging from molasses to maize has created a robust ethanol ecosystem. Parallelly, the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative has commissioned over 100 compressed biogas (CBG) plants and aims for a 5% CBG blending mandate by 2028. Central support for biomass procurement and CBG-pipeline connectivity is accelerating circular energy adoption. Green hydrogen has been given a massive thrust with 8.62 lakh tonnes of production and 3,000 MW of electrolyser tenders awarded. Oil public sector undertakings are leading from the front — Indian Oil Corporation Ltd. (IOCL) recently awarded a landmark 10 kilo-tonnes per annum (KTPA) green hydrogen tender to Larsen & Toubro for its Panipat refinery. Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), and GAIL India Limited are similarly progressing with large-scale hydrogen projects, while the Numaligarh Refinery Limited (NRL)'s green hydrogen unit in Assam is poised to become a first in the northeast. India's natural gas pipeline network now spans over 25,000 km; it targets 33,000 km by 2030. Strategic pricing reforms and inclusion of gas in the 'No Cut' category for transport and domestic segments are ensuring supply stability. Gas production has increased steadily from 28.7 billion cubic metre (BCM) in 2020-21 to 36.4 BCM in 2023-24, with further growth projected. No other country has so drastically altered its 'Systems' as India, as evinced by the Oilfields (Regulation and Development) Amendment Act 2024 which has enabled hybrid leases, allowing renewables alongside hydrocarbons. Discovered small fields (DSF) fields now operate under simplified contracts with minimal compliance burdens, unlocking marginal fields across basins. These sweeping policy reforms show that we are ready to tweak and do more to make India's upstream sector as competitive as any in the world. Through PM Gati Shakti, the Ministry of Petroleum and Natural Gas has digitally mapped over one lakh assets and pipelines. Integration with the National Master Plan ensures real-time project visibility and synergy across ministries. Key projects such as the Indo-Nepal pipeline and Samruddhi Utility Corridor have benefited from route optimisation and cost savings of over ₹169 crore. A consumer outlook Affordability remains central. Despite global LPG prices rising by 58%, Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries pay ₹553 per cylinder, supported by targeted subsidies and compensation to oil companies. Fuel prices in India have been kept stable through excise cuts, insulating citizens from volatility seen in neighbouring countries. Eleven years into the Prime Minister's transformative leadership, India's energy sector is no longer defined by anxiety. It is now marked by confidence, self-reliance and strategic foresight. Energy is not just a commodity. It is a catalyst for sovereignty, security and sustainable development. Hardeep S. Puri is Union Minister of Petroleum and Natural Gas in the Government of India
Time of India
6 days ago
- Business
- Time of India
Foreign oil partners to get first right of refusal in Indian exploration projects: Puri
New Delhi: Foreign oil and gas companies entering technical partnerships with Indian firms will be granted the right of first refusal (ROFR) in the event of hydrocarbon discoveries, Petroleum and Natural Gas Minister Hardeep Singh Puri said on Friday. The minister cited state-run ONGC's recent collaboration with BP for the Mumbai High offshore field and Oil India Ltd's agreement with Brazil's Petrobras in the Andaman Sea basin as examples where such provisions are in place. However, no clarification was provided on the exact contractual terms offered to BP and Petrobras. The ROFR mechanism gives the foreign partner the option to match any offer received by the Indian asset owner from a third party before sale or transfer. Addressing the CII Annual Business Summit 2025, Puri said foreign firms may prefer this model over competitive bidding as it reduces financial exposure. 'It's better that they come in as technical partners, for which they will be paid, and when you strike energy, they'll have the right of first refusal,' he said. On global crude prices, Puri said they are likely to stay close to USD 65 per barrel due to sufficient supply in the market. 'There are enough supplies in the market. I see global prices, and here I am, very careful, to be in the range of USD 65 per barrel. My sense is that prices will hold,' he said. Asked about possible fuel price cuts, the minister said, 'If prices remain like this, then going forward, these are things which you can legitimately expect.' Puri informed that over 1 million square kilometres of sedimentary basins that were previously marked as 'no-go' zones have been opened for exploration. This has led to 37 per cent of the bids under the Open Acreage Licensing Policy (OALP) coming from these newly available areas. Speaking on domestic oil production and refining, he said India's refining capacity, which currently stands at 260 million tonnes per annum (MMTPA), is projected to rise to 309.5 MMTPA by 2028. He said India is shifting from teapot refineries to larger refining hubs. On India's clean energy transition , the minister highlighted rapid progress in ethanol blending. He said the country had already achieved 20 per cent ethanol blending in petrol by 2025, up from 1.4 per cent in 2014, ahead of its 2026 target. Puri reiterated the government's target of bringing green hydrogen production costs down to USD 1 per kg within a decade. He also underlined the potential of large-scale Sustainable Aviation Fuel (SAF) production in countries including India, Brazil, the United States, and Canada. The minister said India imported 5.6 million barrels of crude oil per day in 2024, spending USD 139 billion. To reduce dependence, the country is exploring domestic resources and diversifying import sources from 27 to 40 countries, including Brazil, Guyana, Suriname, Canada and Argentina. India's oil marketing companies reported profits of ₹1.29 lakh crore in the last financial year, and the figure could match previous highs if ₹40,000 crore in pending dues are recovered, Puri said. The minister said that 22,000 km of gas pipeline has been laid as of 2024, with a target of expanding to 33,000 km by 2030. He said domestic gas availability has improved and global prices have stabilised, which will help in boosting industrial and residential consumption. On Compressed Biogas (CBG), Puri said the government has set a target of setting up 5,000 plants. He added that the production of Fermented Organic Manure (FOM) as a by-product remains a key revenue stream for producers. He said land availability and pricing mechanisms will be key to the pace of implementation. Regarding the Ujjwala Yojana, launched in 2016, the minister said there are around 10.3 crore beneficiaries, and the country has over 33 crore LPG connections. Rajiv Memani, President Designate of CII, said, 'Today, India imports over 85 per cent of its crude oil and a significant share of natural gas. Some projections suggest it may reach 90 per cent by 2030. India also imports 50–55 per cent of natural gas. This reliance underscores the urgency to diversify our energy mix, enhance domestic production, and accelerate the adoption of alternative fuels.' Puri also pointed to the growth of energy startups, breakthrough discoveries, and ongoing innovation as indicators of progress. He emphasised the need for collaboration between auto manufacturers and industry leaders to drive clean energy initiatives.
Mint
6 days ago
- Business
- Mint
Oil prices likely to stay around $65/bbl, says petroleum minister Puri
New Delhi: Minister for petroleum and natural gas Hardeep Singh Puri on Friday said that crude oil prices are likely to stay near $65 per barrel due to the ample supply of oil in the global market. Speaking at the CII Annual Business Summit 2025, the minister said that high production is weighing on the oil market. "There are enough supplies in the market. I see global prices, and here I am, very careful, to be in the range of $65 per barrel. My sense is that prices will hold. Supplies becoming available, the prices will be close to $65 a barrel,' he said. He noted that although there have been disruptions due to geopolitical tensions, the prices have not surged as the market is aware that there are adequate supplies. Puri also said that economies with strategic reserves would want to fill them up when the price is low. Mint earlier reported that the government is looking at filling the strategic reserves amid low global prices. The July contract of Brent on the Intercontinental Exchange was $63.96 per barrel, 0.3% lower than its previous close, at the time of going to press. On the likely cut in retail prices of petrol and diesel, the minister told the media, 'If prices remain like this, then going forward, these are things which you can legitimately expect.' Addressing the event, the minister highlighted steps taken by the government to boost domestic oil and gas production. He said that over 1 million square kilometres of sedimentary basins, previously marked as 'no-go' zones, have now been opened for exploration, following which over 37% of bids under the Open Acreage Licensing Policy (OALP) have come from these newly opened areas. Stating that India will be one of the refining hubs, he said the trend was towards the emergence of refining hubs instead of teapot refineries. India's refining capacity is 260 million metric tonnes per annum (mmtpa), which is expected to reach 309.5 mmtpa by 2028, he said. On the significance of the recently passed Oilfields (Regulation and Development) Amendment Act, 2025, Puri emphasised that India has made it easier to do business in exploration and production activities by introducing a single permit system. Despite importing 5.6 million barrels of crude oil per day and spending $139 billion last year on imports, domestic reforms are expected to reduce this dependency. The minister said the government is encouraging domestic exploration while diversifying import sources to 40 from 27 countries. On the clean energy front, he said that there is huge potential for the production of Sustainable Aviation Fuel (SAF) in large quantities in countries like India, Brazil, the US and Canada.
Economic Times
25-05-2025
- Business
- Economic Times
ONGC makes promising oil, gas discoveries in Mumbai offshore
Oil and Natural Gas Corporation has announced significant oil and gas discoveries in the Mumbai Offshore basin. These finds, named Suryamani and Vajramani, were made in blocks awarded under the Open Acreage Licensing Policy. Exploratory wells have shown promising flow rates of both oil and gas. Another discovery was also made in the KG basin. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads State-owned Oil and Natural Gas Corporation ( ONGC ) has made promising offshore oil and gas discoveries in the Mumbai Offshore basin that could help augment production in the near future. The discoveries have been made in blocks awarded under the Open Acreage Licensing Policy (OALP) regime, the state-owned firm said in its fourth-quarter earnings discoveries, which have been named Suryamani and Vajramani, were made in OALP-VI block MB-OSHP-2020/2 and OALP-III block MB-OSHP- 2018/1, both in the offshore Mumbai well MBS202HAA-1 on Block MB-OSHP-2020/2 flowed 2,235 barrels per day of oil and 45,181 million cubic metres a day of gas during testing done in the January-March quarter."This is the first discovery in Basal Clastics in OALP Block MB-OSHP-2020/2. The success in well MBS202HAA-1 was notified as New Prospect Discovery and rechristened as 'Suryamani'," ONGC during the current quarter, a second zone was tested on the same well, which flowed 413 barrels per day of oil and 15,132 cubic metres a day of gas."This hydrocarbon success in Mukta Formation was encountered for the first time in OALP Block MB-OSHP-2020/2 and was notified as New Pool Discovery of Suryamani prospect."Exploratory well MBS181HNA-1 in OALP-III Block MB-OSHP-2018/1 Mumbai flowed 2,122 barrels of oil per day and 83,120 cubic metres of gas a day during testing."This discovery is an independent fault bounded nosal feature and lies in the western part of the block MB-OSHP-2018/1. The success in well MBS181HNA-1 was notified as New Prospect Discovery named as 'Vajramani'," ONGC offshore is home to India's biggest oil and gas fields. Mumbai High, located 160 km off the west coast of India in the Arabian Sea, is the nation's largest and most prolific offshore oil and gas field produces about 1,34,000 barrels per day (bpd), accounting for 35 per cent of India's domestic oil production. The field also produces around 10 million standard cubic metres per day (mmscmd) of gas, representing about 18 per cent of the country's gas Offshore is also home to the giant Bassein and Satellite gas fields and other significant fields like Heera and Neelam, and imports more than 85 per cent of its oil needs and about half of its natural gas requirement. The new discoveries will help augment domestic production, although ONGC gave no timelines for developing the new finds or the production Mumbai offshore, ONGC also made a discovery in the KG basin on land block during the January-March well Yandapalli-1 drilled down to the depth of 3,958 metres in Malleswaram PML in the onland sector of KG Basin found oil and gas reserves, ONGC said."This hydrocarbon success of well Yandapalli-1 was notified as New Prospect discovery," it added.
Hans India
25-05-2025
- Business
- Hans India
ONGC strikes more oil & gas in Mumbai offshore basin
Government-owned Oil and Natural Gas Corporation (ONGC) has made new oil and gas discoveries in the Mumbai Offshore hydrocarbon basin that are expected to enhance the production of the upstream oil giant in the near future. The discoveries, which have been named 'Suryamani' and 'Vajramani', have been struck in blocks awarded under the Open Acreage Licensing Policy (OALP) regime, the ONGC said in a statement issued as part of its January-March quarterly financial results. Exploratory well MBS202HAA-1 on Block MB-OSHP-2020/2 yielded 2,235 barrels per day of oil and 45,181 million cubic metres a day of gas during testing done in the January-March quarter. "This is the first discovery in Basal Clastics in OALP Block MB-OSHP-2020/2. The success in well MBS202HAA-1 was notified as New Prospect Discovery and rechristened as 'Suryamani'," the ONGC said in the statement. Subsequently, during the current quarter, a second zone was tested on the same well, from which flowed 413 barrels per day of oil and 15,132 cubic metres a day of gas. "This hydrocarbon success in Mukta Formation was encountered for the first time in OALP Block MB-OSHP-2020/2 and was notified as a New Pool Discovery of the Suryamani prospect. Exploratory well MBS181HNA-1 in OALP-III Block MB-OSHP-2018/1 Mumbai flowed 2,122 barrels of oil per day and 83,120 cubic metres of gas a day during testing." "This discovery is an independent fault-bounded nosal feature and lies in the western part of the block MB-OSHP-2018/1. The success in well MBS181HNA-1 was notified as New Prospect Discovery named as 'Vajramani'," the ONGC statement said. Apart from Mumbai offshore, ONGC made another hydrocarbon discovery in the KG basin land block during the January-March quarter. Exploratory well Yandapalli-1, drilled down to a depth of 3,958 metres in Malleswaram PML in the onland sector of KG Basin, found oil and gas reserves, the ONGC statement added. "This hydrocarbon success of well Yandapalli-1 was notified as a New Prospect discovery," it added. The discoveries have provided hope at a time when India's imports of oil and gas have been steadily increasing due to ONGC's ageing oil and gas fields. Currently, around 85 per cent of the country's oil requirement is met through imports.
