I feel honored to join the DGH family in the twenty fifth year of its existence. Over last quarter of century ‘Team DGH’ has done stupendous work under able supervision and guidance of my predecessors and I wish to carry the legacy forward.
The world oil and gas scenario is presently at point of inflexion. Low oil prices coupled with technological developments has changed the oil economics all around the world. Shale gas evolution and falling LNG prices has broken all the barriers compelling the select nations to undo prevailing cartel practices and prevent artificially jacking-up crude oil pricing. India’s import bill on account of petroleum and petroleum products has come down drastically allowing the Government to utilize foreign exchange in other important sectors.
Hon’ble Prime Minister of India has set an ambitious target of 10% import reduction by the year 2022. Accelerated indigenous exploration efforts are required to meet these targets to feed the Nation’s energy needs for more than 1.2 billion population.
Proactive steps have been taken by Hon’ble Minister of State, Petroleum and Natural Gas to achieve this mandate. Most significant of them is introduction of Revenue Sharing concept (RSC) and Unified Licensing Policy (ULP) for future bidding of E&P contracts. Other significant policy decisions reflecting Government’s intention to propel E&P sector to desirable objectives of energy sufficiency in short and long term are:
• Process for Setting up of National Data Repository (NDR) in DGH
• Policy for grant of extension for 28 Field PSCs
• Launch of Hydrocarbon Exploration Licensing Policy (HELP) catering for both conventional and unconventional resources through RSC model
• Policy for offer of 67 small discovered fields with discovered resources with path breaking features
• Marketing and pricing freedom for Gas discoveries in Deepwater and Ultra deepwater areas and imposition of a ceiling based on the landed cost of the alternate fuel on Gas prices.
• Policy initiatives for resolving long pending issues of existing PSCs and similar initiatives for resolving issues in CBM contracts.
From DGH’s perspective, our rightful contribution in such a progressive and conducive atmosphere for the E&P sector would be to adopt the role of an enabler, facilitator and to ensure a level playing field. Upstream development cannot prosper without all out positive support of E&P companies and service providers. The need of the hour is to make utmost efforts to smoothen out the bottlenecks with mutual cooperation and support with highest level of transparency and procedural alignment. In line with the same approach, we intend speedy resolution of contractual and technical issues within the ambit of DGH in near term.
I invite all stakeholders to give us suggestions and ideas with regards to upcoming projects so that their valuable suggestion is made a forefront of consideration. At the same time I urge my able DGH team to further expand their horizon and deliver to newer expectations to the best of their capacities.
With this, I propose that DGH and E&P fraternity be more linked and synergistic. Lets us help each other in developing a transparent and effective interface that ensures the implementation of Government policies in order to provide the required impetus to the growth of E&P sector of the country.
I do look forward to your cooperation in the coming days,
- Atanu Chakraborty, IAS