Even in the Context of Climate Change, Investments in Oil & Gas will not be Irrelevant: JS(E) at PHDCCI

No.PR-123

December 4, 2018

New Delhi

EVEN IN THE CONTEXT OF CLIMATE CHANGE, INVESTMENTS IN OIL & GAS WILL NOT BE IRRELEVANT: JS(E) AT PHDCCI

The government on Tuesday categorically asserted that investments in oil and gas will not turn irrelevant for next few decades even in the context of climate change and increasing pollution as their alternate fuels to generate energy will take time to mature and it would continue to encourage exploration of oil and gas and the same time plan for optimum realization of alternate sources of energy so that energy basket mix become balancing.

The aforesaid observations were made at a National Oil & Gas Summit-2018 under aegis of PHD Chamber of Commerce and Industry by Joint Secretary (E), Ministry of Petroleum and Natural Gas, Mr Amar Nath pointing out that second and third round of bidding for 30 contract areas with prospects for oil and gas would begin shortly.

According to him, offer for 35 discovered small fields, bearing gas and oil would also be made in near future explaining that the contractors would be at liberty to even explore shale gas in the contracts awarded to them as it would work-out an incentive for those engaged in such exercise.

Therefore, for at least for next few decades, oil and gas would continue play a critical role in meeting India’s energy requirements and investments in upstream sector are unlikely to go irrelevant even though the focus of government would also be to explore the clean sources of energy, pointed out Mr Nath.

He informed that India imports 80% of its energy requirements whereas 52% of its prospective oil and gas areas and sedimentary blocks are un-appraised and the Ministry of Petroleum and Natural Gas through the efforts of National Oil Companies are prospecting these with 65% to 70% data exploration exercise being completed. The remaining will be completed by 2019 and added to National Data Repository (NDR) to which the investors could have access to.

ED-Head EXCOM, Oil and Natural Gas Corporation, Mr D Purkayastha who was also present occasion stated that his cooperation is looking for disruptive technological tie ups for exploration of oil and gas with R&D support even from domestic engineering institutions.

Among others who were present on the occasion comprised Chairman and Co-Chairman, Hydrocarbons Committee, PHDCCI, Mr Sanjeev Agrawal and Mr Pawan K Tibrawalla including its Principal Director, Dr Ranjeet Mehta.

Ends.

Koteshwar Prasad Dobhal

Consultant (PR)