Sandesh Prabhudesai
8 November 2000
India is planning second round of bidding by December under New Exploration Licensing Policy to explore oil and natural gas, especially in the unexplored block in the deep sea.
"Indigenous production of oil and natural gas is the only solution to overcome the oil crisis India is facing today", said Ram Naik, union minister of petroleum and natural gas.
While inaugurating a three-day seminar on Deep Water Prospects in Indian Offshore, Naik also appealed to the geoscientists gathered here from all over the country to take up the challenge as the present scenario calls for 'more hands and brains'.
Later, at a press conference, Naik also once again ruled out rollback on oil prices, stating that prime minister A B Vajpayee is seized of the issue including tackling the issue of the assurance given to his cabinet colleague Mamata Banerjee. "I hope he will take appropriate decision", he said.
Naik also informed that around 25 to 35 new exploration blocks would be signed within eight months now, after signing 23 such blocks and award for 30 discovered fields seven months ago to private and joint venture companies by floating global tenders.
Presenting a slide show, Dr Avinash Chandra, director general of Directorate General of Hydrocarbons, informed that the deep water areas constitute about 43 per cent or 1.4 million sq kms of unexplored sedimentary area in India.
The scientists gathered here from all over India feel that deep water areas in both the east and west coast of India, which has virtually remained unexplored, could be exploited with the help of new technology and cost-effective equipment while attracting foreign investment.
The statistical figures presented here indicate that in spite of having a large sedimentary area of about 3.14 million sq kms with an estimated hydrocarbon resource base of 28 billion tonnes, hardly 6.85 billion tonnes has been discovered where exploration has just been initiated.
On the other hand, points out Naik, consumption for oil and gas is increasing at a rapid pace of 6 to 7 per cent annually with last year's import bill of Rs 54,000 crore is expected to touch Rs 80,000 crore this year, which constitutes more than two third of India's total oil requirement.
Reasoning out reduction in the level of self-sufficiency in terms of oil to about 30 per cent, Naik observes that stagnancy in oil production for the last eight years is equally responsible besides the accelerated economic growth.
"The import price of $ 11 per barrel has gone up to $ 36 from January last year to September this year, which makes it impossible to cover the monthly deficit of around Rs 250 crore in spite of hiking the petroleum prices", states Naik.
Pointing out at depletion in production at Mumbai High, the ministry has now sanctioned Rs 5000 crore more for exploring oil and natural gas there. While also identifying and offering 12 deep water blocks for the first time, the government is now planning to offer exploration blocks in bidding rounds every year to accelerate the efforts further.
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