Rajasthan has one of the best reserves of oil and gas and government policy must encourage exploration and production of oil & gas from these basins.
When Prime Minister Narendra Modi will inaugurate the work for an oil refinery at Pachpadra in Barmer on Tuesday, he may announce his government’s response to a number of critical issues. These issues are pending for years and his government’s immediate action would be essential to set the pace of hydrocarbon sector’s development in Rajasthan. Modi may highlight his government’s plan to woo the world’s best companies to invest in Rajasthan’s oil fields.
Rajasthan has one of the best reserves of oil and gas and government policy must encourage exploration and production of oil & gas from these basins. “One of the key policy incentives might be in the production sharing contract (PSC) extension front which provides clarity to operators to plan capital investment ahead of time. Globally, governments are providing incentives to extend the life of fields. But, no such support has been announced for prolific fields of Barmer,” said Hukma Ram Chauhan, a research scholar and energy expert at JNV University.
On Sunday, Union Minister of Petroleum and Natural Gas Dharmendra Pradhan visited the Mangala Processing Terminal in Barmer that is producing over 20 percent of India’s domestic crude production. Soon after his visit, Pradhan tweeted; “Visited the famous Mangla well: Mangla field is one of the most prolific producing oil fields in India; Cairn is using Enhanced Oil Recovery (EOR) techniques to maximize oil production from this field.”
Meeting the objective of increasing production through enhanced oil recovery techniques requires investments. Surprisingly, the PSC extension of Barmer fields is still an issue that is getting debated across the hydrocarbon sector. “While governments invite global companies for investment and promise some incentives, it should fulfill those promises rather imposing harsh measures and delaying processes,” said Chouhan.
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