India's deepwater exploration has vast investment potential: Research

Petroleum Minister Hardeep Puri, quoting a report by the global research and consultancy group Wood Mackenzie, on Friday said that India could be the licensing wildcard of 2023, adding that it reaffirms the fact that there is alignment and agreement from Prime Minister's Office (PMO) down to Director General Hydrocarbons (DGH) that more offshore exploration is required.

Wood Mackenzie, also known as WoodMac, is a global research and consultancy group supplying data, written analysis and consultancy advice to the energy, chemicals, renewables, metals and mining industries.

Citing the firm's latest report titled "Why are the Majors interested in deepwater India", Puri said in a series of tweets that the "World looks atA#PMModiJi's leadership with confidence & hope. As this latest report by@WoodMackenzieAstates".

He also tweeted that "Could India be the licensing wildcard of 2023" and added that "this also means there's alignment & agreement from PM's office down to DGH that more offshore exploration is needed".

"We now believe the risk or reward balance in deepwater exploration is sufficiently tempting to bring in the industry's big players," the minister tweeted, quoting a portion from the report.

Citing the concluding remarks of the report, Puri tweeted: "We would argue that India's projection of 'alignment' on wanting more exploration, from the PM down, is particularly advantageous".

The minister, on his part, said that: "New area access & geological prospectivity has opened up over 9.1 lakh sq kms of no-go areas, particularly frontier blocks with limited well and data coverage and untested deepwater for exploration. India's data sharing, fiscal terms & policies have also evoked global confidence".

"Reforms including royalty discounts, zero-revenue sharing for Category II & III basins, windfall revenue sharing, capped govt revenue share, and increased gas marketing & pricing freedom have resonated well with majors. Other regulatory improvements include PARIVESH, an online portal to speed up environmental approvals, & a move to accept more documents from contractors on a self-certification basis. DGH, is also pushing easier data access, virtual data rooms & a new data repository in Houston," Puri added.

--IANS

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