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Govt approves Rs 8,000 crore projects in oil and gas sector

16 Dec 2013 Evaluate

With an aim to enhance the country’s oil and gas production, the Cabinet Committee on Investments, headed by Prime Minister Manmohan Singh has cleared projects worth Rs 7,947-crore in the oil and gas sector for the companies such as IOC, ONCG CPCL and HPCL. Among the projects, Assam renewal project worth Rs 2,379 crore is taken up by ONGC. Furthermore, the panel also cleared a proposed Rs 5,200 crore worth LNG terminal project of GSPC at Mundra. Awa-Salawas pipeline project worth Rs 134 crore is allocated to HPCL and crude oil pipeline from Chennai port to Manali refinery project of Rs 126 crore is taken up by CPCL, while Rs 108 crore investment project of petroleum oil and lubricants tap off point at Kobra in Chattisgarh is allotted to IOC.

India currently imports around 80 percent of its oil needs and 25 percent of natural gas domestic demand. Meanwhile, oil ministry has formulated a roadmap for cutting India's dependence on imports to meet its energy needs. The Ministry wants domestic crude oil demand to be cut to 50 percent by 2020 and by 25 percent in 2025 through intensive exploration and exploitation of untapped reserves. Presently, only 0.93 million sq km area in India is held under exploration and production in 19 basins as compared to total estimated sedimentary area of 3.14 million square kilometers, comprising 26 sedimentary basins. The ministry has already noted that that 10th round of New Exploration Licensing Policy (NELP) auction would be announced by January 15, 2014 under which the government would auction 86 hydrocarbon blocks. 

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