Private sector oil companies Reliance Industries and Cairn India will help push up India's crude oil production by 11 per cent to 36.7 million tones during the current fiscal, the Economic Survey said on Thursday.
For a nation that is 75 per cent reliant on imports to meet its crude oil needs, the Krishna-Godavari basin deep-sea oil find by RIL, and Rajasthan's Barmer desert discovery by Cairn will for the first time in five years raise the domestic output.
"During 2009-10, the projected production for crude oil is 36.7 million tonnes, which is about 11 per cent higher than the actual crude oil production of 33.5 million tonnes in 2008-09," the pre-Budget statement on health of the economy said.
Domestic crude oil production has remained around 34 million tonnes and natural gas at about 32 billion cubic meters during the past five years.
"This (rise in output this fiscal) is primarily due to increase in crude oil production from Rajasthan (2.4 million tonnes) and the KG deepwater (0.8 million tonnes),"
RIL's predominantly gas rich KG-D6 block, off the east coast, has also helped boost availability of the environment friendly fuel in the country.
"The projected production for natural gas for 2009-10 is 50.2 bcm which is 52.8 per cent higher than the actual production of 32.8 bcm in 2008-09," the Survey said.
RIL's 60 million standard cubic meters a day of gas sales from D6 has helped it overtake state-owned ONGC as the largest natural gas seller in the country.
"With 15 new oil and gas discoveries during 2009-10, the domestic availability is expected to improve,"
Gas production from KG-D6 began on April 1, 2009, and it was expected that output would be ramped up to 80 mmscmd by the end of 2009-10.
"An Empowered Group of Ministers (EGOM) constituted to decide commercial utilisation of gas has allocated 61.611 mmscmd of gas produced from KG-D6 on firm basis (mostly to power and fertiliser plants) and 30 mmscmd on fall-back basis to various priority sectors," it said.
Crude oil production from Cairn's Rajasthan fields started from August 29, 2009, and current output is around 20,000 barrels per day. "Production from this block, which is of very high quality, is likely to increase during 2009 through 2011 ... The production expected from this block during 2009-10 is 2.4 million tonnes."
The government has designated Indian Oil, Mangalore Refinery and Hindustan Petroleum for lifting part of the crude oil produced from this block.
ONGC is facing decline in output from old and matured fields. To check fall in output and to raise production, ONGC is implementing improved oil recovery and enhanced oil recovery projects in 14 ageing oil and gas fields."Eighteen new IOR and EOR schemes have been approved to increase the recovery factor from 14 ageing oil and gas fields at a cost of Rs 14,150 crore," the Survey said.
To boost domestic oil and gas production, the government in 1999 launched the New Exploration Licensing Policy aimed at intensifying exploration and an investment of $11.9 billion has already been made in 203 blocks or areas.
Since January 1999, 72 oil and gas discoveries have been made in 21 blocks given out under NELP. "Under the NELP, more than 600 million tonnes of oil equivalent hydrocarbon reserves have been added," the pre-Budget Survey said.
Besides, concerted efforts have been made to put new and marginal fields in production. "Out of 165 marginal fields, ONGC has already monetised 56. Of the remaining 109 fields, 68 are being monetised by ONGC, 20 through service contracts and 21 are likely to be offered (to private firms)," it said.
Balance recoverable crude oil and gas reserves in the country are 736.45 MT and 1,119.55 bcm respectively.
The government is also encouraging national oil firms to aggressively acquire oil properties abroad. ONGC Videsh Ltd produced about 8.75 MT of oil and equivalent gas in 2008-09 from its assets in Sudan, Vietnam, Venezuela, Russia Syria and Colombia.
In 2008-09, OVL has acquired seven blocks in Brazil, Columbia, Myanmar, Venezuela and Trinidad and Tobago. The joint venture of Oil India and Indian Oil Corp has acquired on block in Timor Leste and two blocks in Egypt.
India's total installed refining capacity increased to 177.97 MT as on April 1, 2009 and new units at Bhatinda, Paradip and Bina would help increase it to 240.96 MT by 2012
Source: http://business.rediff.com
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For a nation that is 75 per cent reliant on imports to meet its crude oil needs, the Krishna-Godavari basin deep-sea oil find by RIL, and Rajasthan's Barmer desert discovery by Cairn will for the first time in five years raise the domestic output.
"During 2009-10, the projected production for crude oil is 36.7 million tonnes, which is about 11 per cent higher than the actual crude oil production of 33.5 million tonnes in 2008-09," the pre-Budget statement on health of the economy said.
Domestic crude oil production has remained around 34 million tonnes and natural gas at about 32 billion cubic meters during the past five years.
"This (rise in output this fiscal) is primarily due to increase in crude oil production from Rajasthan (2.4 million tonnes) and the KG deepwater (0.8 million tonnes),"
RIL's predominantly gas rich KG-D6 block, off the east coast, has also helped boost availability of the environment friendly fuel in the country.
"The projected production for natural gas for 2009-10 is 50.2 bcm which is 52.8 per cent higher than the actual production of 32.8 bcm in 2008-09," the Survey said.
RIL's 60 million standard cubic meters a day of gas sales from D6 has helped it overtake state-owned ONGC as the largest natural gas seller in the country.
"With 15 new oil and gas discoveries during 2009-10, the domestic availability is expected to improve,"
Gas production from KG-D6 began on April 1, 2009, and it was expected that output would be ramped up to 80 mmscmd by the end of 2009-10.
"An Empowered Group of Ministers (EGOM) constituted to decide commercial utilisation of gas has allocated 61.611 mmscmd of gas produced from KG-D6 on firm basis (mostly to power and fertiliser plants) and 30 mmscmd on fall-back basis to various priority sectors," it said.
Crude oil production from Cairn's Rajasthan fields started from August 29, 2009, and current output is around 20,000 barrels per day. "Production from this block, which is of very high quality, is likely to increase during 2009 through 2011 ... The production expected from this block during 2009-10 is 2.4 million tonnes."
The government has designated Indian Oil, Mangalore Refinery and Hindustan Petroleum for lifting part of the crude oil produced from this block.
ONGC is facing decline in output from old and matured fields. To check fall in output and to raise production, ONGC is implementing improved oil recovery and enhanced oil recovery projects in 14 ageing oil and gas fields."Eighteen new IOR and EOR schemes have been approved to increase the recovery factor from 14 ageing oil and gas fields at a cost of Rs 14,150 crore," the Survey said.
To boost domestic oil and gas production, the government in 1999 launched the New Exploration Licensing Policy aimed at intensifying exploration and an investment of $11.9 billion has already been made in 203 blocks or areas.
Since January 1999, 72 oil and gas discoveries have been made in 21 blocks given out under NELP. "Under the NELP, more than 600 million tonnes of oil equivalent hydrocarbon reserves have been added," the pre-Budget Survey said.
Besides, concerted efforts have been made to put new and marginal fields in production. "Out of 165 marginal fields, ONGC has already monetised 56. Of the remaining 109 fields, 68 are being monetised by ONGC, 20 through service contracts and 21 are likely to be offered (to private firms)," it said.
Balance recoverable crude oil and gas reserves in the country are 736.45 MT and 1,119.55 bcm respectively.
The government is also encouraging national oil firms to aggressively acquire oil properties abroad. ONGC Videsh Ltd produced about 8.75 MT of oil and equivalent gas in 2008-09 from its assets in Sudan, Vietnam, Venezuela, Russia Syria and Colombia.
In 2008-09, OVL has acquired seven blocks in Brazil, Columbia, Myanmar, Venezuela and Trinidad and Tobago. The joint venture of Oil India and Indian Oil Corp has acquired on block in Timor Leste and two blocks in Egypt.
India's total installed refining capacity increased to 177.97 MT as on April 1, 2009 and new units at Bhatinda, Paradip and Bina would help increase it to 240.96 MT by 2012
Source: http://business.rediff.com
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