New Delhi: India is set to launch a deepwater exploration mission to boost domestic oil and gas output and reduce dependence on imports, Prime Minister Narendra Modi said in his Independence Day speech on Friday.
A significant portion of the national budget is spent on importing fuel, and if that were not the case, the same funds could be used to create opportunities for the youth, the poor, and farmers, Modi said.
“Now we are working towards becoming self-reliant,” he said. “We want to work in mission mode to search for oil and gas reserves in the sea. And so, India is going to launch a national deepwater exploration mission.” The mission, he said, is an important step towards making India energy independent.
In March 2015, Modi had set a goal of reducing dependence on oil and gas imports by 10% within seven years. Instead of falling, import dependence has only increased due to rising domestic consumption and declining domestic output.
The country now imports about 90% of its oil and 50% of its natural gas needs, making the sector a major drain on foreign exchange reserves.
Exploration success is key to boosting domestic output. However, in the past decade, explorers have made no major discoveries in the country. Deepwater exploration is a highly challenging field, requiring enormous capital and technical expertise. India currently has two producing deepwater gas blocks in the Krishna-Godavari Basin-one operated by Reliance Industries and the other by state-run ONGC.
Despite various reforms over the past decade, foreign companies have largely stayed away from exploration licensing rounds. India is now hoping to attract global majors to its latest licensing opportunities after a series of recent reforms aimed at addressing their concerns.
The government sees significant potential in the Andaman Sea and believes that, if the area is thoroughly explored, it could become a major contributor to India’s energy output.
