Wednesday, April 1st, 2020

Increasing Domestic Production of Oil and Gas


New Delhi,

The policy initiatives taken by the Government to increase domestic production of oil and gas include:- 

Policy for Relaxations, Extensions and Clarifications under Production Sharing Contract (PSC) regime for early monetization of hydrocarbon discoveries
Discovered Small Field Policy
Hydrocarbon Exploration and Licensing Policy
Policy for Extension of Production Sharing Contracts
Policy for early monetization of Coal Bed Methane
Setting up of National Data Repository
Appraisal of Unappraised areas in Sedimentary Basins.
Re-assessment of Hydrocarbon Resources.
Policy framework to streamline the working of Production Sharing Contracts in Pre-NELP and NELP Blocks
Policy to Promote and Incentivize Enhanced Recovery Methods for Oil and Gas
Policy framework for exploration and exploitation of Unconventional Hydrocarbons under existing Production Sharing Contracts, Coal Bed Methane contracts and Nomination fields


The Government in February, 2019 approved major reforms in exploration and licensing policy to enhance exploration activities, attract domestic and foreign investment in unexplored/unallocated areas of sedimentary basins and accelerate domestic production of oil and gas from existing fields. The policy reforms, inter alia,aims to  boost exploration activities with greater weightage to work programme, simplified fiscal and contractual terms, bidding of exploration blocks under Category II and III sedimentary basins without any production or revenue sharing to Government, early monetization of discoveries by extending fiscal incentives, incentivizing gas production including marketing and pricing freedom, induction of latest technology and capital, more functional freedom to National Oil Companies for collaboration and private sector participation for production enhancement methods in nomination fields, streamlining approval processes and promoting ease of doing business including electronic single window mechanism.

      Supply of Natural Gas in form of Piped Natural Gas (PNG) to households, commercial units and industries and supply of Natural Gas in form of Compressed Natural Gas (CNG) to vehicles are part of development of City Gas Distribution (CGD) network and the same is carried out by the entities authorized by Petroleum and Natural Gas Regulatory Board (PNGRB). So far, PNGRB has authorized 228 Geographical Areas (GAs) for development of CGD network across country till 10th CGD Bidding Round. 298 districts have been covered under 9th and 10th CGD Bidding Round for supply of PNG and CNG.

       This information was given by the Union Minister for Petroleum and Natural Gas Shri Dharmendra Pradhan





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