Oil minister Dharmendra Pradhan on Monday said that the oil price is pinching the Indian consumers.
Oil minister Dharmendra Pradhan on Monday said that the oil price is pinching the Indian consumers. Dharmendra Pradhan, who was in Dubai, asserted that nobody can predict the price of the oil, ANI reported. The oil prices are rallying at about a four-year-high on back of production cuts by OPEC members and non-members led by Russia.
Back home, due to surging international oil prices, the oil companies after a 19-day-long freeze hiked petrol price by 17 paise and diesel price by 23 paise. Since the hike came just two days after the Karnataka polls, both oil companies and the government are facing criticism.
Dharmendra Pradhan was in Dubai to unveil to investors India’s upcoming second round of auction of discovered oil and gas fields. He said that over 195 million tonnes of hydrocarbon reserves would be put on offer. The bid dates for the Discovered Small Field round II (DSF-II), where 22 contract areas made up of 60 discovered oil and gas fields would be offered, are yet to be announced.
In a series of tweets, Pradhan said DSF Round-I was a success which has given “immense confidence on the upcoming discoveries under DSF-II”. “A whopping 60 large size discoveries with an in-place reserve volume of over 195 million tonnes of oil and oil equivalent gas is on offer under DSF-II,” he tweeted.
India is looking at attracting investors from oil-rich Gulf region to give a push to its almost stagnant oil and gas production. Raising domestic output is key to achieving Prime Minister Narendra Modi’s target of cutting oil imports by 10 per cent by 2022. India imports over 80 per cent of its oil needs.
The 60 discovered fields have been clubbed into 26 contract areas – 15 onland and 11 shallow offshore. As much as 15,000 barrels per day of cumulative peak oil production and 2 million standard cubic meters per day of cumulative peak gas production is expected from the small fields given out in the first round last year, he said.
Bidding for a separate round to give out oil and gas exploration permits under Open Acreage Licensing Policy (OALP) ended earlier this month. “The recently concluded OALP bid round & DSF Bid round I were sterling success with 110 bids received for 55 blocks on offer under #OALP and 30 contracts were awarded to 20 companies to establish 45 million tonnes of oil & oil equivalent gas under #DSFRound-I,” he tweeted.
Speaking at the investor event, he said incremental demand for energy will majorly come from India, whose oil and gas demand is expected to rise nearly thrice from 229 million tonnes currently to 607 million tonnes in 2040. “India, therefore, is the most viable and reliable market for energy in the near future,” he said. The government, he said, has taken several measures to overhaul policy framework to ensure energy security, he said listing a liberalised Hydrocarbon Exploration Licensing Policy (HELP) and DSF as some of the progressive measures aimed at facilitating investments in the exploration and production sector.