PETROLEUM MINISTRY
TO FURTHER ACCELERATE DOMESTIC AS
WELL AS OVERSEAS EFFORTS FOR OIL AND GAS
Shri Atal Bihari
Vajpayee, Prime Minister, took a meeting today to review the present
policies for exploration and production of oil and gas in India
and abroad as also hydrocarbon security concerns. Implementation
of the recent report on re-engineering of regulatory processes
to attract public and private investment in all sectors of the
country’s economy was also reviewed. Attending the meeting were
Finance Minister Shri Jaswant Singh, External Affairs Minister
Shri Yashwant Sinha, Shri Arun Shourie, Minister for Disinvestment,
Communication & IT, Shri Karia Munda, Minister of Coal and
Shri K.C.Pant, Deputy Chairman, Planning Commission besides Shri
Ram Naik, Minister (P&NG), Shri Santosh Gangwar, MOS(P&NG)
and Shri Arun Jaitley, Minister (Commerce, Industry and Law).
Senior Civil Servants like Principal Secretary to P.M., Cabinet
Secretary and the concerned Secretaries as also Heads of Oil PSUs,
ONGC, GAIL, IOC and OVL also participated.
During his presentation,
Shri Ram Naik briefed the Prime Minister and his colleagues about
the success story of NELP and acquisition of equity oil from abroad.
Shri Naik brought out that the total investment in 70 blocks awarded
under NELP is expected to exceed Rs 14,500 crore and that in the
last three years ONGC Videsh had acquired or is in the process
of acquiring properties with investments exceeding Rs 12,600 crore.
He apprised about critical issues such as gas pricing reform,
implementation of CBM policy, constraints in realising the goals
firmed up under India Hydrocarbon Vision 2025 and the road forward.
A presentation was also made by Secretary (DIPP), Shri V. Govindarajan
about streamlining of approval processes and reduction of Inspector
Raj to accelerate flow of domestic and foreign investment.
During the discussions
that followed, the progress of exploration efforts in India and
abroad was appreciated and it was decided that these efforts may
be further accelerated in order to cover all prospective hydrocarbon
areas early. Need for matching infrastructure and other facilities
with the delivery of natural gas from the recent significant discoveries
was stressed. Similarly, accelerating the present pace of acquisition
of equity oil and gas from abroad and setting up of strategic
oil reserves in a time-bound manner was highlighted. Preparations
to meet any situation arising out of hostilities in the Gulf area
were reviewed and the proactive action taken so far was explained.
As an outcome of
the deliberations in the meeting, it was decided that the Committee
of Secretaries under the chairmanship of the Cabinet Secretary,
which reviews mega projects exceeding Rs.500 crore would also
review the progress of NELP projects after commerciality, when
significant investment flows take place. Petroleum Ministry would
conduct studies for various cost effective options for setting
up strategic oil reserves within the next three years and in the
meantime the present efforts would be accelerated. In view of
new opportunities opening up for acquisition of equity oil and
gas as also changing scenario in the light of NELP discoveries,
Petroleum Ministry would have an overall study in the matter so
as to optimise the portfolio of investments by Indian companies.
Prime Minister expressed satisfaction
about the work done by the Petroleum & Natural Gas Ministry
in the last three years and desired that the present momentum
should be accelerated even further.
