AND ITS OIL AND GAS INDUSTRY
The Indian economy has performed strongly over the last
few years, with the Reserve Bank of India estimating growth
in GDP at 9.1 per cent. during the fiscal year 2007/8
(Source: Macroeconomic and Monetary Developments Mid-Term
Review 2007-08, Reserve Bank of India). This rapid economic
growth has led to a significant increase in demand for
crude oil and natural gas, to the extent that India is
currently the sixth largest consumer of oil and gas (Source:
BP Statistical Review of World Energy, June 2007). In
2006, India’s world share of crude oil and natural gas
consumption was 3.1 per cent. and 1.4 per cent. respectively
(Source: BP Statistical Review of World Energy, June 2007).
India is a net importer of crude oil and natural gas.
In 2006, India consumed 2.58 million barrels per day of
crude oil, yet it produced only 0.81 million barrels per
day. Similarly, in 2006, India consumed 1.4 Tcf of natural
gas, but produced only 1.1 Tcf (Source: BP Statistical
Review of World Energy, June 2007).
India started importing gas via
LNG in 2004 at the Dahej terminal on the west coast of
India. In 2006 India imported 282 Bcf of LNG. Upstream
activity continues to remain at high levels with 42 active
offshore rigs and several seismic vessels engaged in operations
offshore on the east and west coasts. Several significant
discoveries have been announced since the NELP was introduced.
The commercial discovery of the Dhirubhai field by Reliance
in the deepwater Krishna Godavari basin has demonstrated
the existence of significant reserves in the basins of
India’s regulatory framework has no restriction on repatriation
of profits outside the country and the legal framework
is based on British common law, which helps to attract
non-Indian companies to operate in the