Urja Varta 2024: Paving the Way for $100 Billion Investment in India’s E&P Sector by 2030

New Delhi: The first edition of Urja Varta, a major conclave focused on India’s energy sector, was inaugurated today by Hardeep Singh Puri, Minister of Petroleum and Natural Gas. During the event, the Minister highlighted significant investment opportunities worth $100 billion in the Exploration and Production (E&P) sector by 2030.

Addressing a distinguished gathering at Bharat Mandapam, Puri emphasized the crucial role of the E&P sector in achieving energy self-sufficiency and sustaining economic growth. He underscored the vast potential of India’s 26 sedimentary basins, which contain substantial reserves of crude oil and natural gas yet to be fully tapped.

“Despite our substantial progress, only 10% of our sedimentary basin area is under exploration today. After the award of blocks under the forthcoming Open Acreage Licensing Policy (OALP) Rounds, this will increase to 16% by end-2024,” said Puri.

He stressed the need to streamline operational and regulatory processes to attract more investments in E&P. “The government is doing its part to catalyse investments in E&P. The Ministry of Petroleum and Natural Gas (MoPNG) has instituted sweeping reforms, empowering stakeholders to contribute to our nation’s progress,” he added. The Minister revealed that the government intends to increase India’s exploration acreage to 1 million sq. km. by 2030.

Puri highlighted the reduction of “No-Go” areas in India’s Exclusive Economic Zone (EEZ) by almost 99%. He discussed the accelerated pace of exploration activities through initiatives like the OALP and the Discovered Small Field (DSF) Policy. “Through the first eight OALP bid rounds, a total of 144 blocks covering approximately 244,007 sq. km. have been awarded, and the recently announced OALP IX round offers an area of approximately 136,596 sq. km. spread over eight sedimentary basins,” he noted. The DSF Policy, since its inception in 2015, has garnered investments of approximately $2 billion and brought in 29 new players.

The Minister also spoke about the government’s focus on promoting scientific data-driven exploration. An investment of Rs. 7,500 crores is being directed towards acquiring new seismic data, financing stratigraphic wells, and acquiring aerial survey data for difficult terrains. “We now have geo-scientific data for the Kerala–Konkan basin and the Mumbai offshore basin on the West coast, and the Mahanadi and the Andaman basins on the East coast,” he said.

To ensure ease of doing business in the E&P sector, the Minister noted, “We have consolidated and simplified 37 approval processes into 18, with nine processes now eligible for self-certification. However, we recognize the need to push these reforms further.” He emphasized the importance of reducing delays in the approval of field development plans, annual plans, and other regulatory permissions.

Puri announced the formation of a Joint Working Group (JWG) comprising representatives from private E&P operators, the National Oil Companies, MoPNG, and DGH to address industry concerns and improve ease of doing business in the sector. He directed the DGH to complete the integration of its various online portals by the end of the year.

In conclusion, Minister Puri expressed confidence that Urja Varta 2024 would serve as a catalyst for collaboration and innovation in the energy sector. He invited stakeholders from industry, academia, and government to leverage the platform to contribute towards India’s energy security goals.

Following his address, Minister Puri inaugurated an Exhibition Gallery and Innovation Centre showcasing technical papers and innovations in the oil and gas sector, underscoring India’s commitment to technological advancement and sustainable energy practices.

Urja Varta 2024, organized by the Directorate General of Hydrocarbons (DGH), aims to unlock India’s untapped upstream hydrocarbon resources sustainably. The two-day event, held on July 11-12, brings together leaders, industry experts, service providers, consultants, and academia members from both traditional and non-traditional energy sectors to discuss challenges and opportunities related to India’s upstream oil and gas industry and energy transition.

With over 400 delegates, 50 exhibitors, and 100 speakers, the program features strategic summits, panel discussions, B2B meetings, and technical conferences. Innovations by startups, service providers, and E&P companies in the upstream sector are showcased in the Innovation Center and Exhibition Gallery, highlighting the dynamic and forward-thinking approach of India’s energy sector.