Govt expects $40 bn in Indian E&P in 4-5 years: Dharmendra Pradhan

We expect investments worth of $40 bn in Indian E&P in 4-5 years: Pradhan

Union Minister of Petroleum and Natural Gas Dharmendra Pradhan today said investments worth $40 billion is expected in Indian exploration and production (E and P) 4-5 years.

"A cumulative investment of $40 billion is expected in Indian E and P sector in near term (4-5 years)," he told reporters here at an event.

The government's liberal policies and transformational reforms were undertaken recently, have led to an investment of $25.2 billion being committed under Production Sharing Contract (PSC) regime, he said.

Field development plans (FDPs) worth $13.6 billion are already approved an investment worth $11.6 billion have the declaration of commerciality, he added.

Further, he said, an estimated investment of $100 million for development of 30 contract areas awarded under Round 1 of DSF, he said adding "the production under this is expected to be around mid-2018."

An investment of about $300 million for development of 61 contract areas under Round 2 of DSF, is expected soon, he added.

"Under Open Acreage Licensing (OAL), $5-6 billion in exploration activities and another $20-30 billion for development activities is expected," Pradhan said.

The minister said the sector presents significant opportunities for the creation of jobs and we all are committed for this.

Meanwhile, he said, Discovered Small Fields (DSF) round was a huge success.

"As a test case of the liberalised policy framework, the DSF Bid Round 2016, was introduced where over 777 square kilometres of contract area comprising 30 contract areas were awarded in March 2017," he said.

DSF 2016 was concluded in a record time of 8 months, he added.