Special emphasis on oil exploration

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The outcome budget of the government lays special emphasis on enhancing existing oil production in the country. Setting aside a massive outlay of Rs 21,106.46 crore for 2005-06 towards undertaking exploration and production (E&P) activities, the government expects that there will be incremental reserve accretion of 49.95 million tonne of oil equivalent by new hydrocarbon finds as also by acquiring oil and gas equity abroad.

The projects undertaken at this outlay include drilling of 149 exploratory wells, 188 development wells, besides opportunities to acquire new equity oil and gas fields abroad. “These projects are undertaken to maintain and enhance the production of oil and gas,” as per the petroleum ministry’s statement of outlays and outcomes/targets for 2005-06.

On the refining front, in order to meet the demand of petroleum products, the refining and marketing companies along with their subsidiaries are undertaking projects to enhance refining capacity, besides upgrading fuels to the latest euro norms. With a outlay of Rs 6,163.23 crore, these companies would simultaneously create additional pipelines and marketing facilities for future distribution of products.