The oil and gas sector is among the eight core industries in India and plays a major role in influencing decision making for all the other important sections of the economy.
India’s economic growth is closely related to energy demand; therefore the need for oil and gas is projected to grow more, thereby making the sector quite conducive for investment.
India is expected to be one of the largest contributors to non-OECD petroleum consumption growth globally. Oil imports rose sharply to US$ 87.37 billion in current year. India retained its spot as the third largest consumer of oil in the world with consumption of 4.69 mbpd each year.
India was the fourth-largest Liquefied Natural Gas (LNG) importer after Japan, South Korea and China. LNG imports increased to 26.11 bcm.
Foreign investors will have opportunities to invest in projects worth US$ 300 billion in India, as the country looks to cut reliance on oil imports by 10 per cent by 2022.
Oil and Natural Gas Corporation (ONGC) is going to invest Rs 17,615 crore (US$ 2.73 billion) on drilling oil and gas wells in current year.
The Oil Ministry plans to set up bio-CNG (compressed natural gas) plants and allied infrastructure at a cost of Rs 7,000 crore (US$ 1.10 billion) to promote the use of clean fuel.
The Government of India is in the process of identifying at least 50 potential blocks of 100 sq km and above to be given to companies for bringing private investment in the mineral exploration sector. The Ministry of Petroleum and Natural Gas has put up for comments a draft policy, to opt for revenue-sharing model while auctioning future oil and gas blocks for exploration to private companies, compared to production-sharing mode earlier, in order to make the process more transparent and market-oriented.
The Ministry of Petroleum and Natural Gas has announced a new ‘Marginal Fields Policy’, which aims to bring into production 69 marginal oil and gas fields with 89 million tonnes or Rs 75,000 crore (US$ 11.18 billion) worth of reserves, by offering various incentives to oil and gas explorers such as exemption from payment of oil cess and customs duty on machinery and equipment.
Govt is planning to build three new LNG terminals at Ennore, Kakinada and Dhamra ports on the east coast. Private players also express interest in setting up LNG terminals. These are the chhara and kutch LNG terminal in Gujarat, karikal terminal in Tamil Nadu, dharma terminal in Odisha and Dighi terminal in Maharashtra.
KRS Infra Ventures engaged in marketing equipment & Services for development of Oil & Gas Sector are:
Petrochemicals | Oil, Crude Oil and Petroleum Products | Oil Exploration & Production Equipment & Materials | Offshore Platform | Specialised Vessels | Safety & Security Equipment and Services etc.
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