Mumbai : The petroleum ministry is working towards having a policy framework on production enhancement contract (PEC) to increase oil and gas production from aging and mature fields, said Union Minister Dharmendra Pradhan. He also estimated that investments worth USD 40 billion is expected to flow into Indian exploration and production (E&P) in 4-5 years.
While addressing an investors’ meet in Mumbai, Pradhan said, “The objective of this framework is to highlight the rate of decline of oil in old and mature fields.” He believes that production will be enhanced through technology. This new policy will be add-on to the existing policies such as Open Acreage Licensing Policy (OALP) and the Hydrocarbon Exploration Licensing Policy (HELP).
“A cumulative investment of USD 40 billion is expected in Indian E & P sector in near term (4-5 years),” he claimed. Breaking it down even further, he said that under Production Sharing Contract (PSC) regime, USD 25.2 billion commitment in investment has been given.
Pradhan said that an estimated investment of USD 100 million for development of 30 contract areas was awarded under Round 1 of Discovered Small Field (DSF) and the production under this expected to be around mid-2018.
Pradhan, skill development minister, said that the oil and gas sector is ever evolving. He stressed that there is a major transformation in the sector due to various disruptive technology and digitalisation. However, this sector with provide tremendous opportunities by creating jobs and are committed to make oil and gas industry eco-friendly, he confirmed.
