India likely to see $58 billion investment in oil, gas production

New Delhi, January 13

India will likely see an investment of $58 billion in finding and producing oil and gas resources by 2023, Oil Minister Hardeep Singh Puri said on Friday, adding global energy majors Chevron Corp, ExxonMobil and TotalEnergies are keen to invest.

India — the world’s third biggest oil-consuming and importing nation — is looking to raise domestic output to help cut down reliance on costly imports. India imports 85% of its crude oil, which is converted into petrol and diesel, and roughly half of its natural gas is converted to CNG and used in industries.

Speaking at the Voice of Global South Summit, Puri said the government has targeted to increase the geographical area under exploration and production to 0.5 million sq km or 15% by 2025 from the current 0.25 million sq km.

“We are expecting an investment of around $58 billion in exploration and production (of oil and gas) by 2023,” he said. “Several multinational corporations such as Chevron, ExxonMobil and TotalEnergies are showing keen interest to invest in Indian E&P sector.” India, he said, is ready to “explore opportunities for joint development and production of oil and gas assets for mutual benefit and also invite investment in our domestic E&P sector”.

Puri said the world is facing an unprecedented crisis of 3Fs - ‘food, fuel and fertiliser’. “We are witnessing extreme price volatility in energy molecules. The most acute impact of this is felt in the global south.” Despite these challenging circumstances, the government has taken several measures to maintain energy security for its citizens.

These include diversification of supplies, an increase of alternate energy sources like bio-fuels, ethanol, and compressed biogas and increasing E&P footprint among others. — PTI

India third-biggest oil consumer

• India — the world’s third biggest oil-consuming and importing nation — is looking to raise domestic output to help cut down reliance on costly imports
• India imports 85% of its crude oil, which is converted into petrol and diesel, and roughly half of its natural gas is converted to CNG and used in industries