Emphasizing the need to boost domestic gas and oil output and to meet the growing energy needs of the country, Oil Minister Veerappa Moily said that India will become energy independent by 2030 as expert panel is preparing a road map for enhancing domestic oil and gas production.
The government has set up a committee led by former finance secretary Vijay Kelkar to prepare road map aimed at boosting the domestic production of oil and gas and help India achieve energy security. India currently imports around 80% of its oil needs and 25% of its natural gas requirements and the committee forecasts it to be lowered by 50% by 2020 and by 75% in 2025 through intensive exploration and exploitation of untapped reserves. Oil minister further added that country has enough resources of oil and natural gas, but there is need to explore these resources. Presently, only 0.93 million sq km area in India is held under exploration and production in 19 basins as compared to total estimated sedimentary area of 3.14 million square kilometres, comprising 26 sedimentary basins.
Moreover, the government will announce 10th round of New Exploration Licensing Policy (NELP) auction of around 68 oil and gas blocks in January, 2014, which will be the second highest offering of blocks since 1999. As per the government, 10th round of auction is likely to be held on new terms wherein a bidder shall be asked to quote the amount of oil or gas output it is willing to offer to the government from the first day of production. Presently, oil companies are allowed to share the profit with the government only after recovering the entire cost of exploration and production.
The government has set up a committee led by former finance secretary Vijay Kelkar to prepare road map aimed at boosting the domestic production of oil and gas and help India achieve energy security. India currently imports around 80% of its oil needs and 25% of its natural gas requirements and the committee forecasts it to be lowered by 50% by 2020 and by 75% in 2025 through intensive exploration and exploitation of untapped reserves. Oil minister further added that country has enough resources of oil and natural gas, but there is need to explore these resources. Presently, only 0.93 million sq km area in India is held under exploration and production in 19 basins as compared to total estimated sedimentary area of 3.14 million square kilometres, comprising 26 sedimentary basins.
Moreover, the government will announce 10th round of New Exploration Licensing Policy (NELP) auction of around 68 oil and gas blocks in January, 2014, which will be the second highest offering of blocks since 1999. As per the government, 10th round of auction is likely to be held on new terms wherein a bidder shall be asked to quote the amount of oil or gas output it is willing to offer to the government from the first day of production. Presently, oil companies are allowed to share the profit with the government only after recovering the entire cost of exploration and production.
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