India's oil demand growth is set to exceed 11% this year as the world's third-largest oil and gas consumer accelerates its economic development, indian Minister of Petroleum and Natural Gas Dharmendra Pradhan said on September 12, 2016.
«The primary prediction for oil trajectory (last year) was 7 to 8%, but we ended up with 11%. This year I am much more hopeful,» Pradhan told Reuters.
«This year (India's oil demand) will break all the records and prediction and we are prepared.»
The growth will be driven by better monsoon rains and an acceleration of economic activity, he said.
The minister was speaking in London ahead of a presentation of India's bid round for discovered small fields which are estimated to hold 625 million barrels of oil and gas.
The indian government plans to launch an exploration licensing round bid in the next financial year as the country seeks to reduce its dependency on imports by 10% by 2022, Pradhan said.
Speaking at the road-show in London on September 12, 2016, he said that the huge energy market in India provides unique opportunity to invest in Indian oil and gas sector.
Pradhan said the 67 small undeveloped fields were discovered long back but could not be monetized mainly due to restrictions in government policies.
Now, he said, progressive policies have been ushered in and private and foreign investments are being proactively facilitated.
Small fields provide an investment opportunity in already discovered fields with no signature bonus, no requirement of prior technical experience and no mandatory work program. The new policy is based on revenue sharing contract model with the aim of simplifying th operating regime and making it more transparent.
Dharmendra Pradhan said that Ministry of Petroleum & Natural Gas is looking at London and UK for bringing in not only investment but also innovation and new technology to improve oil and gas production from these fields. He assured the investors of all possible support.
Since the launch of Bid Round on 25th May, 2016 in New Delhi, multiple interactive meets across India and various international locations – Houston, Calgary, Dubai and Singapore have been conducted for the Bid Round 2016.
