The Hindu Business Line : Extension of deadline for exploration under consideration

Oil meet: The Union Minister for Petroleum & Natural Gas, Mr Murli Deora, with the Petroleum Secretary, Mr M. S. Srinivasan (left), and the Chairman and Managing Director of ONGC, Mr R. S. Sharma (right), at a meet in Hyderabad on Monday. —

Our Bureau

Hyderabad, Jan. 14

The Union Secretary for Petroleum and Natural Gas, Mr M.S. Srinivasan, said that the Government would decide within a fortnight with regard to moratorium for oil exploration.

This move is based on the request made by some of the major oil companies seeking Government support and requesting for extension of deadline for exploration.

Responding to this development, the Chairman and Managing Director of ONGC, Mr R.S. Sharma, said that ONGC, RIL and some other oil companies have written to the Government about acute shortage of rigs for exploration.

Oil companies need to develop wells within four years of allocation. But the shortage has meant difficulty in procuring rigs.

By extending say about two years, oil companies would be able to meet the exploration requirements, Mr Sharma said.

PRICE HIKE ISSUE

Refraining to comment on the possibility of price hike of petroleum products, the Union Minister for Petroleum and Natural Gas, Mr Murli Deora, on Monday said that the meeting of Group of Ministers slated for January 17 would decide the issue.

Speaking to newspersons here today, Mr Deora said that the Government has to address this issue as the price of crude has gone up significantly to touch $100 a barrel and no one can say that the price would be hiked.

This is a matter to be decided by GoM headed by the External Affairs Minister, Mr Pranab Mukherjee.

Speaking at the Seventh International Conference and Exposition of Society of Petroleum Geophysicists here, Mr Deora said with 100 per cent foreign direct investment (FDI) in exploration, the New Exploration and Licensing Policy has received overwhelming response.

Big boost

The development of exploration and production sector has been significantly boosted through NELP and the production is likely to double by the Eleventh Plan period from the current level of 87 million standard cubic metres per day (mscmd).

Mr Deora said the Government has taken in-principle decision to construct 15 million tonnes to strategic storage in phases.

Of this, 5 mt storage at Visakhapatnam, Mangalore and Padur is being built during the first phase.

Refining capacity

The refining capacity at the end of the Eleventh Plan is anticipated at 235 million tonnes per annum (mtpa) against the present capacity of 149 mtpa.

Most of the capacity addition would be for export markets with the planned addition of about 86 mtpa.

To bridge the ever-increasing gap, Mr Deora suggested that exploratory efforts need to be stepped up for alternative resources such as coal bed methane, gas hydrate, coal liquefaction, ethanol and bio-diesel.

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