Key Points
New Delhi: India's annual capital spending on developing oilfields will fall from next year, shrinking by about a fifth by 2030 in the absence of major discoveries, which will lead to a drop in domestic oil production and expand dependence on imports, according to the International Energy Agency (IEA)...
Capital expenditure on developing oil projects is estimated to drop below $3.5 billion in 2030 from around $4.3 billion in 2024..
The estimates are based on the current pipeline of upstream projects, said Toril Bosoni, the head of oil markets at IEA...
Besides ONGC's KG block, which is expected to add 45-50,000 bpd at its peak, there are no other "material projects in the queue that have reached final investment decisions", the agency said.. India's exploration licencing rounds have been dominated by state-run ONGC and Oil India, with limited participation by foreign firms..
"In part, the absence of international companies may be due to lacklustre discoveries since the turn of the century," the IEA said.. Over the past 23 years, 2,000 million barrels (mb) of commercial liquid resources have been discovered in India, compared to 10,000 mb in Angola, Norway and Guyana, and 40,000 mb in Brazil, it said.. "Major players may be waiting on the sidelines for a world-class find before establishing operations and cost centres in the country," the IEA said...
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