Shri Ram Naik, Minister
of Petroleum & Natural Gas has, called upon the oil companies,
both from Public and Private Sectors to ensure that the benefits
of deregulation of oil sector percolate down to the common man
in the country. Inaugurating the 5th International
Petroleum Conference – Petrotech 2003, here today, Shri Naik said
that the dismantling of Administered Pricing Mechanism (APM) w.e.f.
1.4.2002 has already resulted in reductions in the prices of petrol
and diesel on various occasions in line with the objectives of
free competition. However, to promote healthy competition and
to ensure uninterrupted and adequate supply of petroleum products
in all parts of the country, Petroleum Regulatory Board has been
proposed as per a Bill introduced in the Parliament. Till such
time the Regulatory Board is set up, the Government would carry
out functions of the Regulator.
Referring to several
important initiatives towards opening up of the oil sector and
acceleration of exploration and production of oil and gas, Shri
Naik informed that US$ 4.3 billion (Rs. 14,500 crore) is estimated
to be invested in 70 blocks awarded under three rounds of New
Exploration Licensing Policy (NELP). The impetus given to acceleration
of efforts to find more oil and gas is evident from award of 70
blocks in the last three years as against 22 blocks in the previous
10 years. a The bidding process and signing of contracts have
also been expedited with the time span reduced to 3-7 months from
earlier 3-4 years. In addition to acquiring equity oil abroad,
major successes have been recorded in NELP blocks with large gas
discoveries in KG offshore under NELP-I and in an onland block
near Surat in an NELP-II block. To tap a new source of energy,
the Coal Bed Methane (CBM) Policy has been formulated and 8 blocks
awarded so far. With a potential of over 300 billion cubic meters
of gas, an initial investment of US$ 80 million (Rs. 400 crore)
is anticipated in these fields.
Shri Naik reiterated
that the various strategic initiatives have yielded significant
results in line with the objectives set in India Hydrocarbon Vision
2025. The 25 year policy road map was visualised by the Prime
Minister Shri Atal Bihari Vajpayee in his inaugural address at
Petrotech 99. The vision talks of 100 per cent coverage of un-explored
basins in a time bound manner and securing greater acreage abroad
to enhance oil security.
Speaking about the
attainment of self-sufficiency in refining, initiative to import
LNG for bridging the large demand-supply gap, granting marketing
rights to new companies, Shri Ram Naik emphasised that the international
and domestic companies would need to intensify their efforts to
match the requisite growth in the oil sector vis-à-vis
8 per cent GDP target set by the government. The level playing
field in the hydrocarbon sector with the tremendous investment
opportunities makes India a perfect investment destination.
Speaking on the occasion,
Shri Santosh Gangwar, Minister of State for Petroleum & natural
Gas informed that the demand for petroleum products is expected
to be in the range of 123-134 million tonnes by 2006-07. Strategic
storage of crude oil assumes greater importance today on account
of a significant build-up of refining capacity in the country
to achieve self-sufficiency in refining on the one hand and the
increasing dependencies on imported crude oil on the other. The
Government is planning, in near future to achieve a buffer stock
of crude oil for at least 45 days, the Minister said. To keep
pace with the rising demand of the country and for maintaining
the growth of economy, Shri Gangwar called for a massive deployment
of capital and technology under high-risk conditions. He stressed
the need to build a world-class technology culture in co-operation
with experts in the petroleum industry from India and abroad.
Later, speaking at
the Theme Session of Petrotech 2003 titled "Global Co-operation
for Hydrocarbon Technology", Shri K.C. Pant, Deputy Chairman,
Planning Commission called for greater co-operation between nations
in hydrocarbon sector to reduce the great uncertainties in international
hydrocarbon markets. He recalled that the issue of control over
oil resources has been at the centre of strife and turmoil including
the great power rivalry in the 19th and 20th
century. Shri Pant emphasised that international co-operation
is necessary in order to acquire, absorb and integrate new technologies
into the Indian Petroleum industry in order to raise the quantum
of domestic supplies. Some of the areas where existing technology
can immediately help raise the output and efficiency levels are
: detailed reservoir characterisation of all existing fields to
identify bypassed oil for effective drilling, continuous online
monitoring of producing fields for taking midcourse correction
as and when required; application of advanced technologies of
drilling; and increased application of simulation techniques.
Shri Pant further
said that the Tenth Five Year Plan lays down the priorities for
the oil and gas sector to further the development and consolidation
of the oil and gas industry in the country. He suggested creation
of an Apex Committee on Energy to manage the trade-offs between
the divergent objectives that could arise between the different
sub-sectors. Shri Pant called for restructuring and disinvestment
of PSUs on a selective basis; focussing on energy efficiency improvement;
benchmarking the entire hydrocarbon sector to the international
level; creating an enabling atmosphere for development of infrastructure
facilities, etc.
