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Offshore oil and gas blocks hold great potential in India

Offshore oil and gas blocks hold great potential in India
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Industry players opine that India’s offshore exploration sector holds tremendous potential in terms of oil and gas reserves.

According to SK Srivastava, Chairman of Oil India (OIL), offshore exploration will play an increasing role in India’s efforts to source crude oil domestically.

Of the domestic crude oil output of 38 million ton, the offshore sector accounts for 21 million ton, followed by 17 million tons from onshore fields.

He further hinted that the government may offer offshore assets, which includes both deep- and shallow-water blocks, which has potential resources of up to 1 billion barrels. The government may award these blocks
by late 2013 under its open licensing policy, he said.

There are huge prospects in the (offshore) subsalt basins along both the east and west coast and the Andaman islands, he said. He was speaking at the Canada-India Oil and Gas Forum hosted by the Canada-India Business Council.

In the next five years, 208 of the 520 oil wells planned to be drilled in India, about 40 percent, will be in deep water, Srivastava said.

Shashi Shankar, Director technical and field services with Indian Oil Corp (IOC), said with the country’s economy maintaining an annual growth rate of 7 percent-9 percent, output from the offshore fields will play a major role in meeting energy demand.

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