Unlocking untapped reserves and promoting bold private sector engagement is key to meeting growing demand and reshaping India’s energy landscape. Experts say the private sector has been involved in this capital and technology-intensive, high-risk business for a long time, which is crucial, as India’s sediment basin has largely not yet been explored – so far, only 10% of people have been explored.
“It’s time for the government to focus on producing more and more affordable household gas as the last mile of infrastructure is being built quickly,” said Amitava Sengupta, chairman of Petronet LNG, Thiink Gas, Issuing Private Limited and Finance Director, Petronet LNG. “This key area calls for immediate and gradual promotion of its E&P activities through more private sector and global professional participation.
It will create a more competitive environment that encourages companies to innovate and develop new technologies to increase efficiency and reduce costs, which will contribute to a more dynamic and sustainable oil and gas industry.
“The success stories of private players in the oil and gas exploration and production (E&P) sector in India have been well established under the NELP regime,” said Krishan G Insan, an energy expert, academician of the Institute of European University of Italy and global co-chair of the Alumni Sustainability Network.
“To ensure their further participation, the government has proposed an OALP program, which marks an important transition from cost allocation to revenue sharing model, a long-term need for players. The government has taken several measures such as help and oil fields (regulation and development), creating an environment for the E&P sector in 2024,” he further added.
The Ministry of Petroleum is preparing to grant more blocks to Oil and Gas Exploration and Production (E&P) Company (E&P) under the Open Area Permit Program (OALP) Round 10 to reduce import dependence in this key sector. OALP allows investors to undo blocks of their choice based on the available data provided by the formal tender to enhance exploration and production in these areas.
