India's demand for natural gas is estimated to touch 500 MMSCMD by FY17, whereas, the existing domestic gas supply of close to 100 MMSCMD is not likely to go any major change. The recent cuts in domestic gas prices are further expected to shatter the capital intensive conventional E&P business in India. The impact of which will have a serious cascading effect on the gas demand-supply scenario in the country.
The development of marginal & isolated gas fields becomes crucial for a manufacturing and industrialization centric nation, such as India. The incumbent government's "Make in India" initiative may fail to take-off if the fuel sourcing crunch remains the way it has been historically.
Marginal fields were given to ONGC before the licensing rounds on nomination basis. ONGC holds about 165 marginal fields (79 offshore and 86 onshore). Of which, 63 are being surrendered for auction. The government now intends to auction 69 small and marginal oil and gas fields to private firms on a new revenue sharing model. This is a positive step in the direction and could pave way for a new beginning in the Oil & Gas sector in India.
The gas sector works well in a market driven scenario. Government has recently allowed OIL and ONGC to sell gas through their small and isolated gas fields at market determined rates, acquired through bidding. The provision to sell gas from small fields at market determined rates and without a preferential allocation tag is bound to create a positive ripple effect in the gas sector.
InfraInsights through its report, "India to become a Marginal and Isolated Oil & Gas Fields Hub" is aimed to identify the various Opportunities, Risks and Challenges in marginal and isolated oil & gas fields in India. The report unveils the upcoming opportunity in the Marginal and Isolated Oil & Gas Fields Sector in India.