Centre to relax rules, fast-track new measures for oil & gas exploration

More processes to be brought under the self-certification framework while clearance portal is being upgraded

In its bid to achieve the target of having 1 million square kilometers under exploration by 2030, the Centre is planning to expedite a bevy of measures being introduced to make oil and gas exploration easier for companies.

"We are committed to providing pre-approved clearances of blocks, permitting self-certification to cut the application process and granting companies the freedom to carve out operational areas from within the blocks. Work on many of these issues have been ongoing, but we are constantly monitoring the clearance process and will further expedite it," an official with the ministry of petroleum and natural gas (MoPNG) said.

The URJA PRAGATI portal launched by the Directorate General of Hydrocarbons last year for this purpose is also being upgraded, he added.

Contractors and operators of oil & gas blocks must obtain statutory clearances and approvals from various state and central government authorities to start exploration and production activities. These include petroleum exploration license, petroleum mining lease, environment related approvals like environment, forest, and wildlife clearance among others.

Clearances from the ministry of defence and permissions from the pollution control, such as ‘consent to establish’ and ‘consent to operate’ are among other approvals that need to be taken. Delay in obtaining them affects the overall timelines and progress of the exploration and production projects.

The government has so far identified 22 processes for which documents self-certified by contractors are currently accepted, obviating the need for approval. Officials said the number of processes covered under the self-certification framework is being expanded.

Globally recognised and accepted dispute resolution mechanisms, and play-based exploration are also being facilitated to attract global companies like ExxonMobil and Shell and BP. The government has mandated lower royalties for onshore gas blocks to enhance domestic production.

Facilitating easier oil and gas exploration stems from the government's aim to quickly harness domestic production capabilities as demand outstrips supply by a wide margin. BP Energy outlook has projected that by 2050, India's share in the global energy demand will rise to 12 per cent from six per cent currently. As of 2021, the country accounted for just 0.7 per cent of global oil and gas production.

Officials said MoPNG has given high priority to efforts that can quickly raise the current area under exploration. The area has doubled during the past five years to 207,692 (0.2 million) sq km as of earlier this year. India currently relies on imports to meet 85 per cent of its oil needs and 50 per cent of the natural gas requirement, as domestic production is inadequate.

Issues over clearances had earlier held up offshore drilling in the Andaman Deep water basin, officials confirmed. "However, the project has now reached an advanced stage. That is due to quick action taken by the government to identify the chunks of clearances that held up the process, and clearing them en masse while also not compromising with environmental safety and legal standards,” said an official.