India’s Hydrocarbon Sector Set for Major Expansion
India’s hydrocarbon sector is poised for a transformative shift, according to Hardeep Singh Puri, Minister of Petroleum and Natural Gas. Speaking at the Open Acreage Licensing Policy (OALP) Round-IX and Special Discovered Small Field (DSF) Signing Ceremony, Puri emphasized the government’s commitment to enhancing domestic exploration and production. With the country currently relying on imports for 88% of its crude oil and 50% of its natural gas, the urgency for self-sufficiency in energy has never been more critical.
Commitment to Energy Independence
During the ceremony, Puri highlighted the significance of the event, stating it represents more than just a procedural step; it underscores India’s dedication to reducing its reliance on energy imports. He pointed out that India is expected to account for 25% of the world’s incremental energy demand growth over the next two decades. This statistic underscores the pressing need for the country to bolster its domestic energy production capabilities.
Reflecting on the past challenges faced by the Indian upstream sector, Puri noted a decade of stagnation from 2006 to 2016, characterized by policy paralysis and procedural delays. This period saw the exit of major global players like BP and ENI. However, he expressed optimism about the future, stating that the government is determined to unlock India’s untapped energy potential, estimated at around 42 billion tonnes of oil and gas equivalent.
Transformative Reforms and Exploration Expansion
Over the past decade, the Indian government has implemented a series of reforms aimed at revitalizing the hydrocarbon sector. A notable achievement has been the increase in exploration activities, with the explored area of India’s sedimentary basins rising from 6% in 2014 to 10% today, with a goal of reaching 15%. Puri reiterated the commitment to expand exploration acreage to 1 million square kilometers by 2030, highlighting a significant reduction in “No-Go” areas within India’s Exclusive Economic Zone.
The government has invested ₹7,500 crore in scientific exploration, which includes new seismic data acquisition and aerial surveys in remote areas. This data-driven approach has made geo-scientific information accessible for major basins on both coasts. The National Data Repository is being upgraded to a cloud-based platform to facilitate faster and more transparent access to seismic and production data.
Puri noted that 76% of the area currently under exploration has been activated since 2014. Under OALP Round-IX, 28 blocks across eight sedimentary basins have been awarded, covering 1.36 lakh square kilometers, with a significant portion previously designated as “No-Go.” Additionally, two blocks were awarded under the Special DSF Round, attracting a total of 60 bids.
Future Initiatives and Legislative Changes
Looking ahead, Puri announced the launch of OALP Round-X at the India Energy Week 2025, which will offer 25 blocks across 13 sedimentary basins, covering a record 1.92 lakh square kilometers. Notably, 51% of this acreage falls within previously restricted zones. Furthermore, the DSF Round-IV is being introduced, featuring 55 discoveries across nine contract areas with estimated reserves of 258.59 million metric tonnes of oil equivalent.
In a significant legislative update, Puri revealed that the amended Oilfields (Regulation and Development) Act, 1948, will take effect on April 15, 2025. This reform aims to modernize India’s upstream regulatory framework, aligning it with international standards. The government has also established a Joint Working Group (JWG) to address industry concerns, which will facilitate collaboration between private operators and national oil companies.
To promote inclusive governance, the Minister launched the draft PNG Rules Public Consultation Portal, inviting feedback from industry and public stakeholders. This initiative aims to refine future Model Revenue Sharing Contracts and streamline regulations within the sector, ensuring a more transparent and efficient energy landscape for India.
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