Investors are finally upbeat on the investment climate prevailing in India’s oil and gas exploration and production (E&P) sector. An indication to this effect came from BP India’s head Sashi Mukundan, who categorically mentioned that India’s current policy environment is helping attract investment in the upstream sector (E&P) and could help double the share of gas in the country’s energy mix to 15% by 2030.
Gas accounts for about 8% of India’s energy mix, while oil accounts for more than a quarter.
BP also partners India’s energy conglomerate Reliance Industries Ltd in developing a host of discoveries in the country’s Krishna Godavari basin on the eastern coast.
Speaking on the sidelines of a conference on Tuesday, Mukundan (who also heads the energy committee of industry association, the Confederation of Indian Industries) said that India has the potential to unlock gas reserves of at least 10-15 trillion cubic feet (tcf) by 2022 on the basis of discoveries made so far.
Mukundan added that policy announcements in the oil and gas sector this year will help unlock Rs 2.5 to 3 lakh crore investment and aid in domestic gas production. “This domestic production can substitute 10 trillion rupees worth of imports,” he added. India imports about 80 percent of its oil needs and about 45 percent of its gas consumption.
The government had in March simplified licensing rules and offered price incentives to recover gas from difficult offshore fields, giving a fresh lease of life to several natural gas blocks discovered in the country.
Oil Minister Dharmendra Pradhan also attended this conference with the industry on gas economy.
“Had a close-door interaction with Confederation of Indian Industry on ‘Gas roadmap for India; Perspective on Way Forward’. I assured of transparent and progressive policies of Government which would help create a developed gas economy,” Pradhan said in a facebook post later.