Private players win big in new E&P round
For both public and private players in the oil and gas exploration and production (E&P) business, April 15, 2024, could well go down as a new dawn for the sector.
The minister was addressing the Open Acreage Licensing Policy (OALP) Round-IX and Special Discovered Small Field (DSF) Signing Ceremony on Tuesday.
The fact that seven out of a total of 28 blocks were won by Cairn Oil and Gas and one by BP-Reliance in partnership with Oil and Natural Gas Corporation (ONGC) has not only given credence to the increasing importance of the private sector in the upstream sector but also the government’s unwavering commitment to reducing its import dependence and securing its energy future.Says Krishan G Insan, an Energy Expert, a Fellow of European University Institute, Italy and Global Co-Chair of Sustainability Network of Chevening Alumnus: “The success story of the private players-- both domestic and foreign majors—in the Indian oil and gas exploration and production (E&P) sector has already been well established under the NELP regime.” By introducing several measures like OLAP, HELP and the Oilfields (Regulations and Development) Amendment Bill, 2024, the government has created a conducive environment for E&P sector, “adds Insan.With 25% of the world’s incremental energy demand growth expected to come from India in the next two decades, the solution lies in unlocking untapped reserves and fostering bold private sector participation to reshape India's energy landscape and secure its place as a global economic leader. Otherwise, the demand-supply gap is only going to widen further.
Greater involvement of the private sector in this capital and technology intensive, high-risk business, with long lead time, is extremely crucial because the Indian sedimentary basin remains largely unexplored—only 10% has been explored so far.Equipped with state-of-the-art technologies such as sophisticated drilling techniques, use of artificial intelligence (AI), machine learning (ML), robotics and automation in different points along the E&P value chain, private players can significantly accelerate the pace of E&P, potentially leading to the discovery of new reserves and increasing domestic output from both old and new fields. Additionally, by recruiting global talent and spending billions on research and development, private players can ensure highly efficient and low-cost higher production not only from conventional but also from unconventional hydrocarbons such as shale gas and oil tight gas and deepwater exploration. A point that has been proved by the likes of Nico, Nayara Energy, Cairn Oil and Gas, Reliance Industries etc.The drive for Atmanirbhartha in this critical area calls for an immediate ramp up of E&P activities through greater participation of the private sector and global majors. It will create a more competitive environment, encourage companies to innovate and develop new technologies to improve efficiency and reduce costs, which will contribute to a more dynamic and sustainable oil and gas sector. It will also be in line with the Petroleum and Natural Gas Minster’s objective of unlocking India’s untapped energy potential, estimated at approximately 42 billion tonnes of oil and oil equivalent of gas.
- Published On Apr 19, 2025 at 05:50 PM IST
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