The Ministry of Petroleum & Natural Gas is concerned with exploration and production of Oil & Natural Gas, refining, distribution and marketing, import, export and conservation of petroleum products.
Oil and Gas being the important import for our economy, many initiatives have been taken by the Ministry for increasing production and exploitation of all domestic petroleum resources to address the priorities like Energy Access, Energy Efficiency, Energy Sustainability and Energy Security. Following initiatives have been taken up by the Ministry.
Hydrocarbon Exploration Licensing Policy.
National Data Repository.
Discovered Small Field Policy.
2D Seismic Survey.
Natural Gas Grid and City Gas Distribution.
Refineries and Auto Fuel Vision and Policy.
Implementation of BS-IV & BS-VI.
Pradhan Mantri Ujjwala Yojana and PAHAL.
Gram Swaraj Abhiyan and Extended Gram Swaraj Abhiyaan.
Direct Benefit Transfer Kerosene.
National Policy on Biofuels 2018.
Compressed Bio Gas Plants.
Neighborhood First Policy.
Important areas of work allocated to the Ministry.
Exploration for, and exploitation of petroleum resources, including natural gas and Coal Bed Methane, gas hydrates and shale gas.
Production, supply, distribution, marketing and pricing of petroleum, including natural gas, Coal Bed Methane and petroleum products.
Oil refineries, including Lube Plants.
Additives for petroleum and petroleum products.
Blending and blending prescriptions for bio-fuels including laying down the standards for such blending.
Marketing, distribution and retailing of bio-fuels and its blended products. Overall coordination concerning bio-fuels, National Policy on Bio-fuels, policy/scheme for supporting manufacturing of bio-fuels, setting up of a National Bio-fuel Development Board and strengthening the existing institutional mechanism and research, development and demonstration on transport, stationary and other applications of biofuels.
Lube Blending and greases.
Conservation of Petroleum products.
Planning, development, control and assistance to all industries dealt with by the Ministry.
Strengthening energy security by acquiring oil and gas equity abroad and participation in transnational oil and gas pipeline projects.
Planning, development and regulation of oilfield services.
Creation and administration of strategic petroleum reserve through Indian Strategic Petroleum Reserves Limited (ISPRL).
Petroleum Planning and Analysis Cell (PPAC).
All attached or subordinate offices or other organization concerned with any of the subjects specified in the list, including Directorate General of Hydrocarbons (DGH), Centre for High Technology (CHT), Oil Industry Development Board (OIDB), Petroleum Conservation Research Association (PCRA), etc.
Administration of Engineers India Limited (EIL), including their subsidiaries and joint ventures.
Public sector project falling under the subject included in this list except such projects which are specifically allotted to any other Ministry / Department.
Auto Fuel Vision and Policy-2025
Ministry of Petroleum and Natural Gas vide order dated 19.12.2012 has constituted an Expert Committee for drafting Auto Fuel Vision and Policy- 2025 under the Chairmanship of Shri Saumitra Chaudhuri, Member, Planning Commission, with the following terms of reference:-
a. Availability of infrastructure and logistics of fuel supplies.
b. Processing economics of auto fuels
c. Improvement in quality of fuel vis-a-vis improvement in vehicle engine technology
Recommend suitable roadmap for auto fuel quality till 2025 for the country, taking into account achievement under the last Auto Fuel Policy, emission reduction of in-use vehicles, growth of vehicles and supply and availability of fuels
Recommend suitable mix of auto fuels including gas and its specifications considering:
Recommend vehicular emission norms for various categories of vehicles and roadmap for their implementation
Recommend use of alternate fuels to minimize impact on environment
Recommend fiscal measures for funding requisite upgradation of oil refineries, logistics and removal of inter fuel pricing Distortions
The Committee has submitted its report in May, 2014.
Pradhan Mantri Ujjwala Yojana (PMUY)
Pradhan Mantri Ujjwala Yojana (PMUY) was launched by the Hon'ble Prime Minister of India on 01.05.2016. The main objective of the scheme is to provide deposit free LPG connections to women from poor households. The Government had set a target of 5 Crore LPG connections to be distributed to the poor households under the scheme. Subsequently, the target was enhanced to 8 Crore which has been achieved on 7th September, 2019 seven months ahead of target.
DBT Scheme for Kerosene
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that Government has announced implementation of Direct Benefit Transfer (DBT) in Kerosene w.e.f. 01.04.2016 in 33 districts identified by 9 State Governments namely, Chhattisgarh, Haryana, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and Gujarat.
Where the scheme for direct transfer of subsidy is introduced, the consumer will pay the non-subsidized price of kerosene at the time of purchase. Subsequently, the amount of subsidy will be directly transferred to the bank account of the beneficiary.
To avoid any inconvenience to the beneficiary during the initial purchase through payment of non-subsidized price, an initial amount of subsidy shall be credited to all eligible beneficiaries.
As a part of this scheme, implementing States will be given fiscal incentives equivalent to 75 % of subsidy saved in the first two years, 50 % of subsidy saved in third year and 25 % of subsidy saved in 4th year.
The Ministry is also in touch with other States for them to join the DBTK Scheme.
Conventional Hydrocarbons
India has 26 sedimentary basins covering an area of 3.36 million square kilometres.
The sedimentary basins of India, onland and offshore up to the 400m isobath, have an aerial extent of about 2.04 million sq. km.
In the deepwater beyond the 400m isobath, the sedimentary area has been estimated to be about 1.32 million square kilometres.
The Indian sedimentary basins have been broadly divided into three categories based on their degree of prospectivity
The last hydrocarbon resources assessment exercise was carried out approximately two decades ago (1995-96).
During the course of implementation of pre-NELP and NELP rounds and other exploration and production activities, substantial geoscientific data have been generated. New oil and gas fields have also been discovered by utilizing improved geological understanding and new technology.
With the increase in exploration spread and quantum jump in availability of geo-scientific data generated under NELP, there was a need to revisit the hydrocarbon resource assessment of all sedimentary basins of India.
A Multi Organization Team (MOT) comprising of representatives of ONGC, OIL and DGH has carried out estimation of hydrocarbon resource potential in the country.
The exercise of re-assessment of hydrocarbon resources for all the sedimentary basins in the country was completed in 2017.
The prognosticated conventional hydrocarbon resources in 26 sedimentary basins of the country are of the order of 41.87 billion tonnes (oil and oil equivalent of gas), which is about 49% increase as compared to earlier estimates of 28.08 billion tonnes.
About 74% of resources are under "yet to discover" category. Out of 10,680 MMT of oil and oil equivalent gas of in-place volumes, the ultimate reserves which can be produced are about 4,095 MMT of oil and oil equivalent gas.
The balance recoverable reserves are of the order of 1,812 MMT of oil and oil equivalent gas.
The estimated CBM resources are of the order of 2,600 Billion Cubic Metres (BCM) or 91.8 Trillion Cubic Feet (TCF) spread over in 11 States in the country.
the first time in May, 2001. So far, Government has awarded 30 CBM blocks under four rounds of bidding to National, Private & Joint Venture Companies.
In addition, 2 CBM blocks were awarded on nomination basis and one block through Foreign Investment Promotion Board (FIPB) route.
These CBM blocks are in the States of Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh Maharashtra, Odisha, Rajasthan, Tamil Nadu and West Bengal.
CBM in-place reserves of about 280.3 BCM (9.9 TCF) have been established by different operators as on 1st April, 2018. State-wise and block-wise CBM reserves position is given below:
Shale Gas/Oil Resources
It is estimated that a number of sedimentary basins (Gangetic plain, Gujarat, Rajasthan, Andhra Pradesh and other coastal areas) in India, including the hydrocarbon bearing ones – Cambay, Assam-Arakan and Damodar estimates of shale gas and oil are prospective from shale oil and gas point of view in the Indian sedimentary basins carried out by some agencies are as under:
ONGC in August, 2013 has estimated Shale Gas resources of 187.5 TCF for 5 basins namely Cambay, Krishna Godavari, Cauvery, Ganga and Assam
Central Mine Planning and Design Institute (CMPDI): in July, 2013 has estimated Shale Gas resources of 45.8 TCF for one basin, namely Gondwana.
United States Geological Survey (USGS) in January, 2011 estimated Technical Recoverable Shale Gas of 6.1 TCF in three basins namely Cambay, KG & Cauvery.
Gas hydrates
Gas Hydrates can be an unconventional future energy source world over.
World over the production of gas from gas hydrates are at R&D stage. USA, Japan, Russia, China, Germany and Korea are deeply involved in developing a technology to exploit these proved Gas hydrates reserves.
In India, Gas hydrate research and exploratory activities are being steered by the Ministry of Petroleum & Natural Gas under National Gas Hydrate Program (NGHP).
The presence of Gas Hydrate is established in Krishna Godavari, Mahanadi, Gulf of Mannar and Andaman Basin.
Exploration Activities - Framework
The energy demand will rise with social and economic development in the country. The country is dependent on imports for about 83% of its crude oil requirement and to the extent of about 47% in case of natural gas.
In order to bridge the gap between energy supply and demand, MoPNG is committed to accelerate the exploration and production activities in the country.
The reforms in Exploration and Production (E&P) sector were initiated through participation of private and foreign companies in oil and gas sector in 1991 when 28 discovered fields (Pre-NELP Discovered Field) were auctioned during 1991-93.
Further, 28 Exploration Blocks were awarded between 1990 -1997 known as Pre-NELP Exploration Blocks.
Subsequently, after implementation of New Exploration Licensing Policy (NELP) and Coal Bed Methane (CBM) Policy in 1997- 99, the level playing field was provided to the private investors by giving the same fiscal and contract terms as applicable to National Oil Companies (NOCs) for the offered exploration acreage.
In a major policy drive to give a boost to petroleum and hydrocarbon sector, the Government has unveiled a series of initiatives. The reforms in hydrocarbon sector are based on the guiding principles of enhancing domestic oil and gas production, increasing investment, generating sizable employment, enhancing transparency and reducing administrative discretion.
Government has formulated path breaking policies to revolutionize the E&P sector which inter-alia includes -
Gas Pricing Reforms
Policy Framework for Early Monetization of CBM
Discovered Small Field (DSF) Policy
Reform Initiatives to enhance Domestic Production
Hydrocarbon Exploration and Licensing Policy (HELP) coupled with operationalization of Open Acreage Licensing Policy (OALP)
Monetization of the Ratna offshore field
Permission of Extraction of CBM to Coal India Limited (CIL) & its subsidiaries in Coal Mining area.
Policy for the Grant of extensions to Pre-NELP Discovered fields and Exploration Blocks Hydrocarbon Vision 2030 for North East
National Seismic Programme of Un-appraised areas
National Data Repository (NDR)
Policy framework to permit exploration and exploitation of unconventional hydrocarbons in existing acreage of Production Sharing Contracts (PSCs), CBM contracts and Nomination fields
Policy framework for streamlining the working of PSCs
Policy framework to incentivise enhanced recovery methods for oil and gas
In the upstream sector, the two Upstream National Oil Companies (NOCs) viz., Oil and Natural Gas Corporation Limited (ONGC) and Oil India Limited (OIL) play a dominant role with a total share of about 71.5% in oil and 81% in gas production in the country in the year 2017-18.
ONGC produces nearly 61% of indigenous crude oil and 71.5% of country's gas production, while OIL's share is 10% of indigenous crude oil and 9% of gas production. The share of Private/JV companies in oil and gas production is 29% and 19.5% respectively.
The Directorate General of Hydrocarbons (DGH) was established under the administrative control of Ministry of Petroleum and Natural Gas by Government of India Resolution in 1993.
The objective of setting up of DGH was to promote sound management of the Indian oil and natural gas resources having a balanced regard for environment, safety, technological and economic aspects of petroleum activity.
In addition, DGH has been strengthened with certain responsibilities concerning the Production Sharing Contracts for Discovered fields/Exploration blocks, promotion of investment through implementation of policies including Discovered Small Field Policy, Hydrocarbon Exploration & Production Policy (HELP) and monitoring of E&P activities.