Centre is planning to double oil and gas exploration acreage in the North Eastern Region (NER) from the existing 30,000 square kilometres to 60,000 square kilometres in the next five years.
The government has planned to set up a dedicated service provider hub in NER to support the requirement of Oil and Gas Industry in collaboration with state governments targeting to increase oil and gas production from the current 9 MMTOE (Million Metric Ton of Oil and equivalent) to 18 MMTOE in next five years, said Union Petroleum Minister Hardeep Singh Puri in Guwahati on Friday.
He said the government has already approved oil and gas projects to the tune of Rs one lakh crore in the region including Rs 27,000 crore for upstream projects, Rs 30,000 for Numaligarh Refinery (NRL), and Rs 10,000 crore for IGGL (Indradhanush Gas Grid Ltd) projects.
He said the oil exploration and production business in the North East Region has a huge hydrocarbon potential and is waiting to be tapped. It is estimated that NER has a potential of 7600 MMTOE, but only 2000 MMTOE has been discovered so far.
“With concerted efforts by industry and governments, oil production is expected to increase by 67% from 4.11 MMT in 2020-21 to 6.85 MMT in the next 4 years. Gas production is forecasted to more than double from 5.05 BCM in 2020-21 to 10.87 BCM in next 4 years,” the Minister while addressing an event in Guwahati to showcase Upstream Oil & Gas opportunities in North East Region (NER).
Calling upon the investors to actively participate in upcoming rounds and become part of the national E&P enterprise, the Minister said that much impetus has been given to the northeast region in the recent past, which will act as a catalyst for the envisaged future growth in the region.