Page 43 - Policy Economic Report_Jan 25
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POLICY AND ECONOMIC REPORT
OIL & GAS MARKET
o Green Hydrogen: Oil & Gas PSU have planned for 900 KTPA Green Hydrogen Projects (EPC & BOO
mode) by 2030. 42 KTPA tenders have been floated by PSU refineries, which are likely to be
awarded by March 2025. Approximately 128 KTPA tenders will be issued by PSU refineries based
on the outcome of the ongoing tenders.
o The Government has set an indicative target of 1%, 2% and 5% blending of SAF in Aviation Turbine
Fuel (ATF) initially for international flights with effect from 2027, 2028 and 2030, respectively.
o The PM JI-VAN Yojana has been amended vide notification dated 21.08.2024, incorporating key
changes, such as Inclusion of advance biofuels in place of "2G ethanol.", Eligibility for bolt-on and
brownfield projects and Extension of the scheme's timeline up to FY 2028-29.
11. REFINING CAPACITY
o The country has 22 operating refineries with a total refining capacity of 256.8 Million Metric
Tonnes Per Annum (MMTPA).
o Eighteen refineries are in public sector, three are in private sector and one as a joint venture. Out
of the total refining capacity of 256.8 MMTPA, 157.3 MMTPA is in the public sector, 11.3 MMTPA
in joint venture, and the balance 88.2 MMTPA is in the private sector.
o Further, refining capacity is likely to increase from 256.80 MMTPA to 309.50 MMTPA by 2028 on
account of refinery capacity expansion projects being implemented in 11 PSU refineries as well as
setting up of new grassroot refinery.
12. EXPLORATION AND PRODUCTION
o Hydrocarbon Exploration Licensing Policy (HELP): To exploit the huge potential of oil and gas in
Indian sedimentary basins, the government launched the Open Acreage Licensing Program (OALP)
as a part of the Hydrocarbon Exploration Licensing Policy (HELP) in March 2016. The new
exploration policy provides for a paradigm shift from Production Sharing Contract (PSC) regime to
Revenue Sharing Contract (RSC) regime. Total 144 blocks covering more than 2,42,056 Sq. Km.
area have been allocated to the companies in eight concluded OALP Bid Rounds with committed
investment of ~ 3.137 billion USD. Till date, 13 hydrocarbon discoveries have been made in blocks
awarded under OALP and one discovery is already producing gas (0.44 MMSCMD) in Gujarat while
other discoveries are under appraisal phase. Further in round IX of OALP, area of approximately
1,36,596 Sq. Km. spread over 8 sedimentary basins was offered and the same has received a very
good response from the bidders. The bids received are under evaluation and Blocks will be
awarded to successful bidders very soon. Thereafter, an area of 1,91,986.21 Sq. Km. has been
finalized for International Competitive Bidding in OALP Bid Round-X.
? Further, a total of 741 (132 exploratory and 609 development) wells have been drilled in
FY 2023-24. The gas production has increased from 34.45 BCM in FY 2022-23 to 36.44
BCM in FY 2023-24. A total of 12 discoveries have been made in nomination and
contractual regimes in FY 2023-24. A total of 16645.31 LKM of 2D seismic and 15701.17
SKM of 3D seismic surveys have been conducted during FY 2023-24. Moreover, during FY
2023-24, under Airborne Gravity Gradiometry and Gravity Magnetic Survey (AGG & GM)
Survey, a total of 42,944 Flight LKM 2D Seismic Data was also acquired.
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