Private play in old oilfields needed for extra energy
Public sector oil companies ONGC and OIL may be in for a rude shock as the Economic Survey has called for the privatisation of old oilfields which have remained largely unexploited.
By Rajeev Jayaswal, TNN |
Public sector oil companies ONGC and Oil India (OIL) may be in for a rude shock as the Economic Survey has called for the privatisation of old oilfields which have remained largely unexploited. It has been suggested that the latest technology could be employed for better oil recovery from these fields.
Spelling out policy reform options for the oil sector, the Survey said, ���Sell old oil fields to the private sector for application of improved/ enhanced oil recovery techniques.���
Some steps in this direction have already been taken with state-run oil firms like ONGC inviting bids for their marginal oil fields. It said that the move is important for India���s energy security, especially at a time when global crude oil prices are volatile and skyrocketing. India imports about 72% of its crude oil requirements.
It has been found that India���s oil production output is declining from old fields (in Gujarat and Assam), mainly operated by ONGC and Oil India. The government has been constantly asking public sector undertakings to enhance oil production by making investments in appropriate technology.
The Survey suggested that the government should focus on reducing incremental import dependence for India���s energy requirements in the medium to long term. India has already spent $48.02 billion on crude imports in the first nine months of the current fiscal compared to $48.389 billion in fiscal 2006-07.
The prescription includes tapping India���s coal reserves with appropriate technology and accelerating exploration of oil and gas besides exploiting nuclear and hydro potential for power generation.
Besides stepping up domestic production, the Survey has suggested that India should enter into strategic geo-political alliances to access energy assets abroad. It suggested to make investments in energy chains in Middle-East and Africa.
Spelling out policy reform options for the oil sector, the Survey said, ���Sell old oil fields to the private sector for application of improved/ enhanced oil recovery techniques.���
Some steps in this direction have already been taken with state-run oil firms like ONGC inviting bids for their marginal oil fields. It said that the move is important for India���s energy security, especially at a time when global crude oil prices are volatile and skyrocketing. India imports about 72% of its crude oil requirements.
It has been found that India���s oil production output is declining from old fields (in Gujarat and Assam), mainly operated by ONGC and Oil India. The government has been constantly asking public sector undertakings to enhance oil production by making investments in appropriate technology.
The Survey suggested that the government should focus on reducing incremental import dependence for India���s energy requirements in the medium to long term. India has already spent $48.02 billion on crude imports in the first nine months of the current fiscal compared to $48.389 billion in fiscal 2006-07.
The prescription includes tapping India���s coal reserves with appropriate technology and accelerating exploration of oil and gas besides exploiting nuclear and hydro potential for power generation.
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Besides stepping up domestic production, the Survey has suggested that India should enter into strategic geo-political alliances to access energy assets abroad. It suggested to make investments in energy chains in Middle-East and Africa.
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