The Hindu Business Line : Ministry targets 26% increase in crude output

Fuelling growth
Overseas production of oil and gas during XI Plan is projected to increase to about 45 million metric tonnes of oil equivalent (MMTOE) comprising about 35 MMT of crude oil and about 10 BCM of gas.

New Delhi , Oct. 12

The Ministry for Petroleum and Natural Gas has projected a 26 per cent increase in domestic crude oil production and a 41 per cent increase in natural gas production in the XI Plan period.

In a presentation on exploration and production (E&P) activities, the Minister of Petroleum & Natural Gas, Mr Murli Deora, informed the Parliamentary Consultative Committee attached to his Ministry of the target.

Crude oil and natural gas production in the country over the last four years of the current Five Year Plan has been almost stagnant as there had been few major oil and gas discoveries by state-owned E&P companies. Some of the other reasons cited for the stagnant production include the natural decline in the ageing fields.

Targets and strategy

In the presentation, the Minister informed the Committee that the targets and strategy for XI Plan relating to oil and gas sector were being finalised. It is proposed to target an increase of 26 per cent in domestic production of crude oil to 211.64 million metric tonnes (MMT) over the X Plan achievements, which is likely to be 167.74 MMT. Similarly, the production of natural gas is projected to increase by 41 per cent in XI Plan period to 224.56 billion cubic meters (BCM) over X Plan estimated production of 158.79 BCM.

Besides, the first Coal Bed Methane (CBM) gas production is slated to begin in 2007-08, the first year of XI Plan. During the XI Plan period CBM production is projected at 3.78 BCM.

He also said the country was likely to witness gas production from another alternative source — Underground Coal Specification (UCS) — towards the end of XI the Plan.

Overseas production

The Committee was also informed that overseas production of oil and gas during XI Plan was projected to increase to about 45 million metric tonnes of oil equivalent (MMTOE) comprising about 35 MMT of crude oil and about 10 BCM of gas. This would be more than double of X Plan period production of 22.24 MMTOE (16.83 MMT of crude oil and 5.41 BCM of gas). The Ministry also proposes to bring 65 per cent of India's sedimentary basins under exploration by the end of XI Plan.

While welcoming the steps taken by the Petroleum Ministry to enhance the performance of the sector, the Committee felt that steps should be taken so that the shortage of drilling rigs in the global market did not affect domestic exploration and production efforts.

Petroleum & Natural Gas Regulatory Board: Mr Deora said the Petroleum & Natural Gas Regulatory Board was likely to be in place soon. The Board is proposed to regulate downstream petroleum sector activities, including processing, storage, refining, transportation, distribution and marketing of petroleum products and natural gas. This is with the objective of protecting the interest of consumers and entities engaged in specified activities.