Union Finance Minister Shri P Chadambaram has emphasised need for meeting the challenge of economic growth leading to rise in demand for oil supplies and the competing pricing requirements. Addressing Valedictory session of Petrotech 2014 at Greater Noida today, he added that oil producers would like to price it on the higher side while the importing countries would seek the lowest price.
Global energy basket is changing rapidly due to developments in the advanced and developing economies. These changes will alter the global energy trade routes. He stressed that energy is a key resource and hydrocarbon has become focus of every large country. Shri Chidanbaran also said that India has become the focal point of oil and gas business in the Asia Pacific region.
Petroleum Minister Dr Veerappa Moily has said that Petrotech 2014 which concluded at Greater Noida today has significant take aways as the event was one of the best organized and best attended so far.Speaking at Petrotec2014 Valedictory Session. Following is the uncorrected text of Dr Moily’s speech :
“First of all I would like to extend a very warm welcome to Shri P Chidambaram, Finance Minister of India and one of the most talented Policy Makers with a distinguished track record in national politics. That he is here with us today despite his busy schedule should encourage the hydrocarbon fraternity in their efforts to secure the country’s energy security.
Dear delegates and petroleum sector professionals, we are now in the final moments of this vibrant conference -Petrotech-2014. For me, it has been a wonderful enriching experience. I compliment all those who tirelessly worked to ensure success of this mega event.
Petrotech 2014 has lived upto its pre-conference reputation as the pre-eminent event of its kind not just in India but across the Asia-Pac region. In fact, I can go ahead and say that Petrotech 2014 has, by far, been the best Petrotech edition – a benchmark that will be difficult to match let alone better in the coming editions, be it in terms of organizational efficiency, intellectual capacity building or networking opportunities.
The Conference Theme of “Vision 2030 Global Energy Basket: Challenges and Opportunities” provided the necessary direction and ample ballast to the discussions and deliberations in the Conference as stable, reliable, affordable and sustainable energy supplies become central to long-term economic and developmental growth plans of countries and global economies.
The biennial event that was inaugurated by the Hon’ble Prime Minister of India Dr Manmohan Singh has achieved meaningful traction along the Prime Minister’s focus areas of technology orientation and collaboration in light of the changing order of the global and national energy ecosystem where economic growth and development needs to take into account the environmental impact and sustainability quotient of our energy operations.
Let me share some highlights of Petrotech 2014:
· A total of 4367 delegates participated in Petrotech-2014 out of which 588 international delegates.
· 258 authors presented papers.
· A total of 30 countries participated in Petrotech 2014 comprising of 15 Ministers and 3 Special representatives of Ministers.
· Minister level bilateral meetings were held with 11 countries.
· 526 Companies participated in the Exhibition which comprised of 281 foreign companies and 245 companies from India.
· 124 Media persons covered the event.
The 10th round of NELP that was officially announced on the first day of the event has opened up the country’s hydrocarbon sector for partnership that could help unleash the country’s enormous untapped potential. The latest round of block auctions will certainly provide a boost in terms of enhancing the attractiveness of the domestic sector to international players as an enabling regulatory and fiscal framework will encourage greater investment and exploration of the country’s basins of which more than 70 per cent still remain largely under-explored.
I invite all the companies present here to participate in NELP X round of bidding in an aggressive manner.
The Ministerial Sessions featuring the Hon’ble Energy Ministers form several important countries including Canada, Mozambique, Bahrain, Libya, Azerbaijan, UAE, Uganda, Ecuador, Sudan, Turkmenistan and Oman provided great scope for future partnership by identifying areas of common interest. For the record we had participation of 15 energy ministers and 3 senior representatives of the energy ministries from around the globe.
I would briefly touch upon some of the major agreements reached with my counterparts during the bilaterals:
1. In Libya, We agreed to explore the possibility of entering into new long term contracts for supply of crude oil as well as participation by Indian Companies in the Upstream sector. The Libyan Minister also agreed to explore the possibility of Urea fertilizer plant in Libya based on assured availability of Gas and Fertilizer buy back arrangement.
2. India and UAE agreed to joint bidding in third countries by Indian companies and Mubadala, UAE. Participation of Indian Companies in the Bid for renewal of Adnoc’s concession agreements was also discussed.
3. In pursuance of the MoU entered between the Ministry of Strategic Sector, Ecuador and OVL CDs containing data related to oil & Gas blocks of Ecuador were handed over to OVL for carrying out due-diligence.
4. Indian companies expressed keenness in participating in the oil sands projects in Canada. Interest was also expressed in long term arrangement for off-take of LNG and Crude oil from Canada. Premier, Alberta offered to enter into an arrangement for sharing the fracking technology for exploitation of Shale gas resources in India.
5. Minister of Energy, Uganda agreed to look into India’s request for awarding oil blocks to India on nomination basis.
6. The Petroleum Minister of Sudan offered to award E&P blocks 5 and 18 to OVL on nomination basis.
7. The representative of Turkmenistan conveyed message from the President of Turkmenistan that the consortium leader for the prestigious TAPI project would be finalized in the 1st Quarter of 2014.
8. While discussing the recent acquitions in Rovuma area-1 in offshore Mozambique, the Minister of Mineral resources, Mozambique assured full support to fast track the approval process for the investment agreement for the LNG hub and the related decree law. This could enable the consortium to conclude the FID by the end of 2014 as scheduled.
The overall emphasis on ‘collaboration’ in the energy sector particularly in the complex and extremely challenging E&P sector was marked and the various discussions that have taken place over the past few days focused on devising creative solutions to current problems of balancing growth and risk-mitigation centered on a partnered approach. International energy pundit Daniel Yergin too underscored the importance of collaboration especially in the domain of technology development to effect faster diffusion of technologies.
In all this, the significance of correct policy measures is not lost on us. And we are constantly reassessing and reviewing our policy models and also bringing in the necessary reforms to facilitate and incentivize the oil & gas sector and allow them to be more competitive at a global level. Not just that, the reforms should also position India as a viable destination for foreign investors. We understand India’s linkages with the global petroleum sector are deep and irreversible. Hence, our domestic hydrocarbon sector, too, should mirror the global trends and realities and accommodate, to a reasonable extent, the expectations of global stakeholders.
The policy regime of the UPA government, has always been supportive of all efforts which are dedicated for the energy security of the nation. We are constantly taking steps that can contribute to making the framework more robust, resilient and, above all, transparent.