India opens 2.8 million sq. km for oil, gas bidding

New Delhi : India has opened up 2.8 million sq. km of area for oil and gas bidding round of India under a new Open Acreage Licensing Policy and invited global companies for investment.

Chairing two Ministerial sessions on the subject – Current Economic Strategies in Indian Oil and Gas Sector, and also on Supply and Demand Challenges for Oil, Gas and Products at the 22nd World Petroleum Congress at Istanbul, Turkey, India’s Petroleum Minister Dharmendra Pradhan said, “We have launched the oil and gas bidding round of India under a new Open Acreage Licensing Policy recently. We have opened up 2.8 million sq. km of area for your investment.”

Inviting global companies to participate in the policy, Minister Pradhan said, “I extend the commitment of the Government of Prime Minister Modi that you will receive a red carpet welcome if you decide to invest in it.”

Addressing the plenary session, Pradhan said that rising middle class of emerging Asian countries like India will drive the demand for energy both in terms of electricity and cooking and transportation fuel. As incomes rise, demand for petrochemicals the raw materials for several of the lifestyle products will also increase. Giving example of India, he said that the energy consumption is expected to grow to almost double by 2035. India is the only country where the demand will continue to rise for more than a decade.

He flagged the importance of “Responsible Price” for crude oil for countries like India which would allow it to provide energy to the common people. He underlined that in today’s oversupplied market, it is important for producers to understand the perspective of consumers and demand centres and the changes that have taken place in these demand centres. As the security of supplies is an important factor for consumers, security of demand is equally important for producers.

Minister Pradhan held bilateral talks with Turkish Energy Minister Berat Albayrak during which issues of bilateral energy cooperation including in renewable energy were discussed. The two Ministers agreed that they need to work together on few concrete projects in coming period in areas like E&P and downstream sectors. They also agreed to work together in third countries. (ANI)