Ministry of Petroleum and Natural Gas Government of India. Interactive Meet Mumbai

Transcription

1 Ministry of Petroleum and Natural Gas Government of India Interactive Meet Mumbai DGH Directorate General of Hydrocarbons 26 October 2017

2 Our Prime Minister Major policy reform in the petroleum sector through the new Hydrocarbon Exploration Licensing Policy, there will be pricing and marketing freedom and a transparent revenue-sharing methodology. This will eliminate many layers of bureaucratic controls. - Shri Narendra Modi, Hon ble Prime Minister at Bloomberg Economic Summit

3 Our Petroleum Minister In the next 10 years, India is offering project scope of USD 300 billion (in hydrocarbon sector) looking into our future demand - Shri Dharmendra Pradhan, Minister of Petroleum and Natural Gas & Minister of Skill Development and Entrepreneurship at India Energy Forum

4 India is the World s Fastest Growing Large Economy Economy Size (FY ) USD 2.3 trillion 7 companies in Fortune 500 (2017 list) India s GDP grew 7.1% in Population 1.3 billion Second most populous country GDP Share (Advance estimates for FY ) Services 53.4% Industry 31.2% Agriculture 15.3% Unemployment rate 3.5% (30 days moving average June 2017) FDI USD billion (April 2000-March 2017) Forex Reserves (As on June ) USD billion Source: India Soars High, KPMG Report, BSE, Reserve bank of India, World Bank,

5 Government of India Reforms 01 Make in India Devised to transform India into a global design and manufacturing hub Digital India To create a digital infrastructure as a core utility to every citizen Ease of Doing Business To make governance more efficient and effective Start Up India Aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive for growth of Start-ups Smart Cities An urban renewal and retrofitting program with a mission to develop 100 cities all over the country Swacch Bharat To accelerate the efforts to achieve universal sanitation coverage 04 Source: KPMG Analysis; ; sbm.gov.in/; startupindia.gov.in/

6 India s Energy Basket Coal 57% MTOE Hydro 4% MTOE Oil 30% MTOE Renewables 2% MTOE Gas 6% MTOE Nuclear 1% MTOE Source : BP Statistical Review

7 India s Energy Outlook Primary Energy Consumption CAGR ~5% India Oil and Gas Consumption- Production Snapshot Widening gap in demand and supply for oil & gas MTOE Source : BP Statistical Review Gas Production (MTOE) Gas Consumption (MTOE) Oil Production (MT) Oil Consumption (MT) Total Production (O+OEG) Total Consumption (O+OEG) 3 rd Source : BP Statistical Review 2017 Largest consumer of oil Oil and Gas contribution to and petroleum products 35.6% primary energy in the world consumption in FY MMT of proven oil reserves TCF of proven natural gas reserves

8 Indian Energy Infrastructure kms. of Petroleum Product Pipeline Network kms of Natural Gas Pipeline Network Established City Gas Distribution Network across 16 states More than 22 MTPA of existing LNG re-gasification capacity 235 MTPA of refining capacity with private players share of ~40% Source : PPAC

9 Sedimentary Basins of India India has 26 sedimentary basins covering an area of 3.14 million square kilometres CATEGORY-I BASIN (Proven Commercial Productivity) Assam-Arakan, Cambay, Cauvery, Krishna-Godavari Offshore, Mumbai Offshore, Rajasthan CATEGORY-II BASIN (Identified Prospectivity) Kutch, Mahanadi-NEC, Andaman-Nicobar CATEGORY-III BASIN (Prospective Basins) Bengal, Ganga, Himalayan Foreland, Kerala- Konkan Lakshadweep CATEGORY-IV BASIN (Potentially Prospective) Basar, Bhima Kaladgi, Chhatisgarh, Ciddapat, Deccan Syneclise, Karewa, Narmada, Pranhita Godavari, Satpura-S.Rewa-Damodar, Spiti Zanskar Pre-Cambrian Basement/Tectonised Sediments

10 Key Discoveries First Offshore - Bombay High KG D6 Basin Source: DGH

11 Exploration and Production Regime in India State Monopoly Liberalization of E&P Sector ( ) 9 NELP and 4 CBM rounds. 254 exploratory and 33 CBM blocks through competitive bidding New Domestic Gas Pricing Guidelines Successful completion of DSF e-bids received for 34 contract areas 30 contract areas awarded to 20 Companies Further liberalization of the sector Beginning of de-regulation 28 producing fields and 28 exploratory blocks offered including private players Discovered Small Field Policy Discovered small field bid round 2016 Hydrocarbon Exploration & Licensing Policy Open Acreage Licensing; NDR Launch Revenue Sharing Model Pricing Guidelines for difficult gas fields Proposed Production Enhancement Contracts Policy Nomination Era Pre-NELP PSCs NELP/CBM PSCs Future

12 Highlights of PSC regime in India Total License Awarded PSC Regime 16 lakhs square kms Total License currently under operation under PSC: ~105,000 sq. km US$ 40 bn investments till date and US$ 25 bn in pipeline 241 discoveries (126 Oil and 115 Gas) with Cumulative (O+OEG) production of 320 MMT ~400,000 LKM 2D and ~300,000 SKM 3D seismic data 1046 exploratory and 1018 development wells drilled so far ~25.6% of the total production is contributed by blocks under PSC regime PSC regime saw participation from large no. of players 2P reserves inplace Production, MMT ( ) Foreign Players Private Players PSU Non-operators 24 Operators 35 PSC, 2357, 21% Nominati on, 8876, 79% Nominati on [VALUE], 74.4% PSC [VALUE], 25.6%

13 Architecture of the New E&P Policy Hydrocarbon Exploration and Licensing Policy (HELP) Open Acreage Licensing Reconnaissance Contract (RC) Petroleum Operations Contract (POC) Salient Features Revenue Sharing Model Full Marketing & Pricing Freedom Fiscal Incentives Unified License for all type of Hydrocarbons Freedom to carve out blocks National Data Repository

14 Discovered Small Fields Bid Round Total number of e- bids received 13 New entrants to E&P industry 47 Total number of companies that participated Discovered Small Fields Bid Round Existing E&P Players 20 Companies being awarded singly or in consortium Contract Areas awarded Onshore 7 Offshore Success story in the face of global economic slowdown and low oil prices

15 National Data Repository Central repository for E&P data of India High level of Security Ease of Access Automatic reporting Integrated with GIS browser Facilitates sharing among users and domain Storage Viewing Retrieving Usage Facilitation of data viewing through: NDR Portal Physical Data Room Virtual Data Room

16 Data loaded in National Data Repository (NDR) 2D Seismic 3D Seismic Wells 1.7 million LKM of 2D seismic data 0.6 million SKM of 3D seismic data 13,170 well logs & 11, 900 well header data *as on 31 st July 2017

17 Attractive Features of HELP Open Acreage Licensing Revenue Sharing Model Full Freedom for Marketing and Pricing Single license for conventional & unconventional hydrocarbons Increased exploration phase Continuous exploration permitted during contract period Equal weightage of work program & fiscal share No carried interest by NOCs Graded Royalties for different block types Up to 100% FDI allowed Low regulatory burden Transparent bidding model Defined mechanism for developing common reserve Defined timelines for PI transfer Flexibility to use infrastructure in adjacent blocks Other fiscal incentives

18 Area offered under HELP through OAL Total Sedimentary Area = 3.14 million sq. kms. Total Area offered under OAL = 2.84 million sq. kms. Onshore = ~1.5 million sq. kms. Offshore = ~1.3 million sq. kms. Zone 1 Sufficient Data Coverage 0.7 million sq. kms. Zone 2& 3 Moderate to Sparse Data Coverage million sq. kms.

19 Open Acreage Licensing Flexibility to choose between Petroleum Operations Contract & Reconnaissance Contract Allows bidders to carve out their own blocks (minimum 10 by 10 Grid) by studying data at National Data Repository. Incentive mechanism for originators. Exploration rights on all retained area for full contract life. Environmental and Site Restoration obligations. EoIs can be made round the year with bidding rounds at 6 monthly cycles. Time bound actions and activities with disincentives for non-performance Time-Bound FDP preparation and provision for Direct FDP submission.

20 Thank you Oil and Gas in India Fueling a billion dreams everyday Directorate General of Hydrocarbons (Under Ministry of Petroleum & Natural Gas) Phone: , Fax: dg@dghindia.gov.in Website: dghindia.gov.in DGH India Directorate General of Hydrocarbons (Ministry of Petroleum & Natural Gas)

21 Thank you Directorate General of Hydrocarbons (Under Ministry of Petroleum & Natural Gas) Phone: , Fax: Website: dghindia.gov.in DGH DGH India