The Oil and Natural Gas Corporation has announced on Wednesday that it will invest more than Rs 13,000 crore to explore oil and gas by drilling over 220 wells across Assam in the next five years. In a statement, the state-run firm announced that a Memorandum of Understanding had been signed with the Assam government. The statement said that the firm will enhance its exploration and production activities across the state.
ONGC also added that it is giving impetus to its activities in alignment with the Prime Minister's call to reduce imports by 10 percent by 2022 and the Northeast Hydrocarbon Vision 2030. The North East Hydrocarbon Vision was released by Oil and Petroleum Minister Dharmendra Pradhan in 2016 to increase investment in the state's oil reserves by increasing exploration and drilling. The vision envisages an investment of Rs.1,30,000 Crore in upstream, midstream, and downstream sectors in North East India. In order to incentivize exploration and production in the North East region, a 40% subsidy on gas operations has been extended to private companies operating in the region.
Vision 2030 aims to double the production of Oil and Natural Gas and increase access to clean fuels such as LPG and CNG for households at affordable prices in the region. It also seeks to support growth in per capita petroleum product consumption, provide pipeline connectivity by installing new POL and LPG pipelines. Vision 2030 will look to develop natural gas grids, CGD networks, and CNG highways; generate employment opportunities through industry and skill development; and also incentivize production of biofuel in the region to provide access to clean fuels and boost the rural economy.
ONGC, in the statement released on Wednesday, also said that the investment in the state by drilling wells and producing oil will give impetus to develop North East region as a dominant hydrocarbon hub at the forefront of India's energy economy