India's Hydrocarbon Outlook – 2022-2023

India, at the forefront of economic growth, is also the third largest consumer of energy in the world. A concomitant of economic growth is development of domestic energy resources for increasing supply of energy, enhancing energy security and reaping the associated multiplier outcomes. The demand for energy is growing fast resulting in greater oil and gas import dependency. Additionally, volatility in global crude oil and gas prices, currency parities have additionally strained the public exchequer. Expert bodies assess that India’s demand for oil and gas will continue to increase significantly till 2040. The demand for crude oil may double over the next 10-15 years or so. To meet the national goal of enhancing energy security, accelerating domestic exploration and production of oil and gas is a top priority for the country. DGH is fully aligned for building domestic oil and gas reserves base and increasing production. Several far-reaching policy reforms have been recently ushered by the Government of India. To make India a preferred destination for investment in upstream oil and gas sector, initiatives such as opening of offshore areas for exploration with the target of exploration acreage of 0.5 million sq. km. by 2025, upgradation of national data repository, provision of self-certification by E&P Operators have been taken. While new discoveries of oil and gas are being brought on production progressively, bulk of current production comes from matured and maturing fields. These fields require infusion of new technologies and business models backed by policy led incentives. Government of India has offered 10 blocks covering around 34,365 sq. km of acreage area under OALP Bid Round-VIII and 26 blocks spanning an area 2.23 lakh sq.km of acreage area under OALP Bid Round-IX for exploration and development through international competitive bidding (ICB). Under Special CBM Bid Round, Government of India announced offering of 16 CBM Blocks totalling 5817 sq. km, under ICB. Upgrade of the National Data Repository (NDR) to a cloud-based, state-of-the-art facility with virtual data rooms is in progress for investors for 24x7 access to E&P data. Since April 2021, DGH has adopted the Petroleum Resources Management System (PRMS) guidelines for reporting the hydrocarbon resources in the country. Adoption of these global standards and practices will make it easier for global companies to evaluate the hydrocarbon potential of India and make investment decisions. Message by Director General, DGH