The Hindu Business Line : Oil, gas production must be stepped up: Aiyar

(From left) The Union Minister for Petroleum and Natural Gas, Mr Mani Shankar Aiyar, the Co-Chairman and MD, Jubilant Organosys, Mr Hari S. Bhartia, and the Vice-President, Asian Development Bank, Mr Jin Liqun, at the India Economic Summit 2005 in the Capital on on Monday. — Kamal Narang

New Delhi , Nov. 28

THE Union Petroleum Minister, Mr Mani Shankar Aiyar, on Monday said India would need to step up domestic exploration for oil and gas as its major fields are expected to start declining in the next few years.

In order to restrict the import burden there was a need for scaling up oil and gas production.

Addressing a session on energy at the India Economic Summit 2005, the Minister said domestic requirement was putting a heavy demand on Oil and Natural Gas Corporation (ONGC), which continues to be the dominant player in this field. "ONGC has done a good job in maintaining plateau production from the ageing fields so far. But there is apprehension of a steep decline in oil and gas production from these fields in next few years so we must get into finding new fields," he said.

"We need to jack up domestic production by bringing new areas under exploration. Almost 80 per cent of India's prognosticated reserves have not yet been explored," he added.

On opening up the exploration sector, Mr Aiyar said the Government was in the process of liberalising the New Exploration Licensing Policy (NELP). "Major innovations could be expected in the sixth round of NELP. The Government is also actively considering open acreage policy, which the Ministry wants to introduce on experimental basis."

When asked about the status of the Iran-Pakistan-India pipeline project, the Minister said gas imports from Iran by pipeline passing through Pakistan were indispensable for the country's economic growth.

Mr Aiyar said he expects the three sets of bilateral dialogue between India and Pakistan, India-Iran and Pakistan and Iran would culminate into a trilateral dialogue early next year.

"We have made extraordinary progress towards realising a world-class safe and secure project," he said.

While stating that India had already appointed technical and financial advisors for the project, Mr Aiyar added that within two-three days a legal advisor would also be appointed.

As regards the oil prices, Mr Aiyar said that he expects them to `remain high' for a long-time but the country has `sufficient' foreign exchange reserves to pay for its imports of the fuel.

He, however, did not indicate a level while referring to the high oil price.

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