With contractual disputes dampening India’s efforts to step up investment in its oil and gas hunt, the new DGH Atanu Chakraborty has promised to expeditiously resolve issues, iron out bottlenecks and make decision-making transparent.
The Directorate General of Hydrocarbons (DGH), which had been at the centre of controversies, is looking to start with a clean slate by supporting exploration and production (E&P) activities of oil and gas to cut down import dependence.
The IAS officer, who took over as the head of DGH last month, in his first message on the regulator’s website said accelerated indigenous exploration efforts are required to meet Prime Minister Narendra Modi’s target of reducing import dependence by 10 per cent to 67 per cent by 2022.
“The need of the hour is to make utmost efforts to smoothen out bottlenecks with mutual cooperation and support with the highest level of transparency and procedural alignment. In line with the same approach, we intend speedy resolution of contractual and technical issues within the ambit of DGH in the near term,” he wrote.
Of late, DGH has been accused of over-regulation by controlling expenditure of operators as well as insisting on its own set of technical parameters for recognising gas discoveries. It also found itself at the receiving end when it was seen approving a higher capex for KG basin gas fields when production did not match targets.
According to Chakraborty, DGH’s contribution in creating a progressive and conducive atmosphere for the E&P sector would be “to adopt the role of an enabler, facilitator and ensure a level-playing field”.
Reaching out to E&P companies and service providers for “all-out positive support”, he invited stakeholders to provide suggestions and ideas on upcoming projects.
“At the same time, I urge my able DGH team to further expand their horizon and deliver to newer expectations to the best of their capacities,” he said.
For better efficiency, he proposed that DGH and the E&P fraternity be more linked and synergistic. “Let’s us help each other in developing a transparent and effective interface that ensures implementation of government policies in order to provide the required impetus to the growth of E&P sector of the country,” Chakraborty added.
The world oil and gas scenario, Chakraborty felt, is at the point of inflection. “Low oil prices coupled with technological developments have changed the oil economics all around the world. Shale gas evolution and falling LNG prices have broken all the barriers, compelling the select nations to undo prevailing cartel practices and prevent artificially jacking up of crude oil prices,” he said. Jamal Adams JerseyShare This