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India’s crude oil production falls nearly 1% in April


India’s crude oil production in April 2022 stood at 2.46 milion tonne, lower by 0.95% on a year-on-year basis.

In April 2021, crude oil production in the country was 2.49 million tonne. 

The producion in April this year, however was 3.47% higher than the target of 2.38 million tonne, said a statement from the ministry of petroleum and natural gas. The target of India’s crude oil production in FY23 is 30.22 million tonne.

State-run Oil India Ltd produced 251,460 tonne crude oil last month which is 0.79% lower than target for the month. 

The ministry attributed the fall in production to “less than planned contribution from workover wells, drilling wells and old wells”. Protests and blockade by local people and associations in Assam after the blowout at Oil India’s Baghjan oilfiedl in the state also affected production, it said.

The fall in crude oil production comes at a time when crude oil prices remain elevated due to the Russia-Ukraine crisis and the global supply concerns. India has been making efforts to increase its domestic oil production in a bid to reduce the import dependence. The country imports around 85% of its energy requirements.

In March, a standing committee on petroleum and natural gas recommended the government to review its strategy to increase the domestic oil production and take concrete, tangible steps for the same. In its report submitted to the parliament, the committee raised concern over the “very minimal” contribution of oilfields under the ‘new exploration licensing policy’ in the overall production of crude oil in the country.

The report noted that the ministry of petroleum and natural gas has assured the panel that from the upcoming financial year (FY23), there would be turnaround in the production of crude in the country and it will witness an increase in production.

The natural gas production on the other hand although increased 6.61% to 2.82 billion cubic metres in April 2022 on a year-on-year basis, it was 2.29% from the monthly target of 2.89 billion cubic metres.

Public sector energy major ONGC produced 1.70 billion cubic metres of natural gas, 0.62% higher than its target, but 1.01% lower than the production in April 2021. Declined in production from Gandhar, Jambusar and Dahej fields in Ankleshwar asset, was listed as a factor for decline in ONGC’s natural gas production.

Oil India produced 244.92 million metric standard cubic metres (MMSCM), which is 19.30% lower than the monthly target, but 13.85% higher than the production during April, 2021. The shortfall in achieving the target by Oil India was due to low demand of gas by the major customers and less than planned contribution from workover wells, drilling wells and old wells, said the statement.

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