Oil and gas production expected to double in XIth Plan: Deora

14 January 2008

With exploration and development efforts made under NELP, the centre expects natural gas production in the country to double by the end of the 11th five-year plan (2007-12) from the approximately 87 million standard cubic metres per day (MMSCMD) at present.

Inaugurating the seventh international conference and exposition of the Society of Petroleum Geophysicists, minister of petroleum and natural gas Murli Deora said that a sustained economic growth rate 8 per cent to 10 per cent called for the rapid development of the energy market. The conference is being attended by geoscientists, technologists and professionals from upstream oil industry from India and abroad

He said, that in order to enhance the energy security in the country, the government was focusing on increasing domestic oil exploration and production; acquiring energy assets abroad; development of sources of alternate energy to oil and gas; strategic storage of crude reserves and; conservation and implementation of environment friendly policies.

Deora added that the new exploration licensing policy (NELP), which had helped to bring in liberalisation to the sector by opening it to private and foreign investment by allowing 100 per cent foreign direct investment (FDI) had provided a major boost to the development of exploration and production (E&P).

Besides, Indian PSUs and other private companies have a presence in over 20 countries with ONGC Videsh Limited maintaining a leading role by producing about 8 million tonnes of oil and oil equivalent of gas through their overseas assets.

Apart from intensifying exploratory efforts for oil and gas in the Indian sedimentary basins and abroad, Deora said that steps were being taken to harness other alternate sources of energy like coal bed methane, gas hyderates, coal liquefaction, ethanol and bio-diesel.