'We are still very small compared to the global majors'

Petroleum secretary S C Tripathi speaks to Hardnews on the proposed India-Iran pipeline and the future of India's energy sector

Archana Kapoor & Trina Joshi Delhi

Much noise has been made over the proposed Iran-Pakistan-India gas pipeline, which can bring to India about 60 million cubic metres of gas a day. Petroleum Secretary S C Tripathi tells Hardnews that this may not necessarily be the "peace pipeline" it has been hyped to be in the media: the talks are still on a one-to-one basis, as India finalises the deal with Iran and Iran speaks to Pakistan on the transit logistics. Tripathi also believes that although the Indian energy sector is way behind that of the global majors, it is growing rapidly and can take on international competition on their own terms. With India's economy growing at a phenomenal rate, the demand for energy will also grow, prompting Oil and Natural Gas Commission (ONGC) to look both inward and outward.

Excerpts from the interview:

There is much excitement in the oil and gas sector, as India is picking up new oil and gas fields abroad. Does this mean we have reached the limits of our own production?

No, it does not. But, our requirement of energy sources and resources is growing very fast. Our average consumption rate right now is one-fifth of the world's average. Our energy intensity per unit of economic output is two times the world's average. So, our energy intensity is high and our average level of consumption is low. Our demand will keep growing in the next 20 or 30 years at a rate faster than most countries. Right now, we are importing between 70-75 per cent of our oil requirement. It is expected that in the next 10 years or so, this import intensity might increase to 85 per cent. We are doing our best to explore and develop oil fuels and gas fuels in India, but we are not Saudi Arabia or Iran. We have plenty of water resources but we do not have enough oil resources. Therefore, we are making efforts to go outside India and find these resources. Now, our companies have developed the financial and technological strengths to go outside India and compete on equal terms.

What about oil fields like Bombay High? What are the prognosticated reserves?

Bombay High was one of the major discoveries made in the past 30 years. Right now, through new and improved technological mechanisms, we are trying to enhance and increase oil recovery so that we can continue extracting oil and gas from those fields for another 10 or 15 years or so. But, theoretically, we cannot extract more than 45 to 50 per cent, and that is a level we are trying to reach in the case of Bombay High. But Bombay High has its own limitations. We need to look at other fields as well.

Recently, there were reports about the ONGC exercising the walk-in option to pick up stakes in Aishwarya and other fields operated by Cairns in Rajasthan at an expected loss of Rs 1,440 crore. What was the thinking behind this decision, when we seem to be following a strategy to offset our needs and demands by buying or having joint ventures in Sudan, Ecuador and Siberia?