How do you foresee the upcoming year for the Oil and Gas Industry?January 30, 2018
By Namrata Nikale Tanna, Oil Asia Journal• Actually with the tremendous reforms undertaken by the Government of India in the E&P sector in the last 2-3 years, the sector is seeing vigorous activity. In the year 2018, we will have around 55 oil & gas blocks in the prime basins awarded in the first round under the new policy i.e. Hydrocarbon Exploration & Licensing Policy (HELP). This policy is offering new acreages with attractive fiscal terms like reduced royalties and no cess, marketing and pricing freedom for produced oil & gas and ease of regulatory compliance.
• Further we are soon going to come out with the second round of Discovered Small Fields (DSF) under the umbrella of HELP, which will offer undeveloped discoveries of National Oil Companies (NOCs) for International Competitive Bidding. This is a follow-up offering after the huge success of DSF Round-I in 2016, where the contractors are already working towards monetizing the discoveries.
• We are also working on formulating more facilitating and innovative policies. One of them is regarding assisting the NOCs to boost production from their mature fields by way of bringing in new technologies, latest management practices, fresh investment etc. Another is looking at ways to enable enhancement of recovery factors from all Indian fields and developing unconventional hydrocarbon reservoirs. More of such reforms are expected to bring in fresh wave of renewed focus on the Indian E&P sector and more production.
• We have also commissioned the National Data Repository (NDR) which allows all stakeholders access to various types of E&P data and forms the backbone of HELP. The reassessment of prognosticated hydrocarbon resources in India is in the final stages of conclusion, which prima facie points to over 200 billion barrels of oil and oil equivalent gas, yet to be found in India. This implies that there is enormous scope for the sector in the coming years to realize the true potential of Indian sedimentary basins.
• Going by the industry feedback, it is expected that the sector will grow by leaps and bounds wherein all companies/operators will show entrepreneurial skills, adopt innovative business processes and deploy state-of-art technologies to enhance the domestic hydrocarbon availability in the country, in line with Prime Minister’s vision.