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Natural gas

India Launches National Deep Water Exploration Mission to Boost Domestic Energy Production

Strategic Insights

— 1 min read

India's Prime Minister Narendra Modi announced a significant initiative to boost the country's domestic energy production by launching a National Deep Water Exploration Mission. The mission aims to discover oil and gas reserves beneath the seabed, reducing the country's multi-billion-dollar import bill and making it self-reliant in energy. India currently imports around 88% of its crude oil and half of its natural gas requirements.

Key Takeaways:

  • The National Deep Water Exploration Mission aims to discover oil and gas reserves beneath the seabed to reduce India's energy import dependence.
  • India imports around 88% of its crude oil and half of its natural gas requirements, resulting in a significant drain on the country's finances.
  • The Modi government has revamped the exploration policy, introducing an open acreage licensing policy and opening up a record area for exploration of oil and gas.
  • Since 2014, 172 discoveries have been made, including 66 offshore, with an acreage of over 0.38 million square kilometers awarded for exploration.
  • India has opened up nearly 1 million sq km of erstwhile 'No-Go' areas for exploration and put them up for bidding, including new deepwater frontiers like the Andaman-Nicobar basin.
  • The Andaman Sea is seen as a high-potential exploration zone, with 25 blocks offered for bidding under the current OALP-X bid round.
  • India hopes to achieve energy independence and reduce its import dependence, creating jobs and strengthening energy security.

Statistics:

  • India imports around 88% of its crude oil and half of its natural gas requirements.
  • Over the last five years, 52 discoveries have been made, and 172 since 2014, including 66 offshore.
  • An acreage of over 0.38 million square kilometers has been awarded for exploration since 2014 (compared to 82,327 sq km between 2009 and 2014).
  • India has opened up nearly 1 million sq km of erstwhile 'No-Go' areas for exploration.
  • The Andaman Sea is being touted as a high-potential exploration zone, with 25 blocks offered for bidding under the current OALP-X bid round.

Sources:

  • [ Global Data Point, 2022 ]
  • [ Ministry of Petroleum and Natural Gas, July 31, 2022 ]
  • [ Oil Minister Hardeep Singh Puri, July 30, 2022 ]

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