India's Hydrocarbon Outlook – 2022-2023

13 DGH: 3 DECADES OF UNLOCKING INDIA'S HYDROCARBON POTENTIAL and Joint Venture Companies through various bidding rounds. Due to this spurt in activities in the upstream sector, the Ministry of Petroleum and Natural Gas had under consideration the need to have an appropriate agency to regulate and oversee the upstream activities in the petroleum and natural gas sector and also advise the Government in these areas. Subsequently, various committees headed by experts recommended for the creation of an autonomous conservation board and an independent regulatory body for the sound management of hydrocarbon resources in the country. A committee under the Chairmanship of Late Dr. A.B Dasgupta, former Managing Director of OIL, which had reviewed the management of the Bombay High reservoir in 1990, recommended for the creation of an autonomous conservation board to oversee and reviewoilfield development programmes to conform to sound reservoir engineering practices in line with national interests. Subsequently, a committee was constituted in 1992 under the chairmanship of late Shri P. K. Kaul, former Cabinet Secretary, to examine the need for restructuring ONGC's organizational structure. This committee recommended for establishment of an independent regulatory body to be called the Directorate General of Hydrocarbons. DGH-Objective To promote sound management of the Indian Petroleum and Natural Gas resources having a balanced regard for the environment, safety, technological and economic aspects of the petroleum activity. 1.1 Formation of DGH In April of 1993, the Government of India established the Directorate General of Hydrocarbons (DGH) under the administrative control of the Ministry of Petroleum & Natural Gas (MoPNG). This organization was tasked with regulating and overseeing upstream activities in the petroleum and natural gas sector, in order to ensure optimal exploration and exploitation of the country’s oil and gas resources, and also to advise the government in these matters. The decision to establish the DGH was driven by concerns regarding proper reservoir management of oil fields such as Mumbai High, as well as the entry of private players in the Exploration & Production (E&P) business, which had hitherto been under the control of National Oil Companies (NOCs) like ONGC and OIL. The prime goal of DGH is to facilitate prudent management of the petroleum and natural gas resources in India, while ensuring an equitable balance between environmental conservation, technological advancement, and economic development in the petroleum industry.