Vision & Objective

10 Years Vision of Petroleum Sector in Rajasthan

1. 1. Hydrocarbon Production Strategy in Rajasthan.
2. 2. Development of Heavy Oil Resource in Rajasthan.
3. 3. Exploitation of Natural Gas Resources of Jaisalmer Basin & Barmer-Sanchore Basin for Power Generation & other commercial use
4. 4. Value addition of Petroleum Resources through Refinery cum Petrochemical Complex
5. 5. Revenue from Petroleum Sector

Hydrocarbon Production Strategy in Rajasthan

About 150.40 million barrel proved reserves have been assessed in 38 discovered fields of Barmer-Sanchore Basin. Commercial Production of crude oil has been commenced from Mangla Field on 29th August, 2009 and at present about 78,000-80,000 barrels of oil per day is being produced from  Oil/Gas Fields namely Mangla, Bhagyam, Aishwariya, Saraswati, Raageshwari oil, Rageshwari-S1, ABH, Guda, NE, NI, Raag Deep Gas, Kameshwari.

Development of Heavy Oil Resource in Rajasthan

            Geological, reservoir & basin modeling studies completed through PDVSA Company of Venezuela.

·      Trial production of Heavy Oil conducted in 2009 with the recovery of 64 MT of heavy oil and it will further be resumed through suitable EOR technique, which may lead to commercial   production after proving its producibility.

·         Presently 550-570 barrels per day heavy oil is being produced from baghewala area.

Exploitation of Natural Gas Resources of Jaisalmer Basin & Barmer-Sanchore Basin for Power Generation/ Commercial use

A total of about 10.8 billion cubic meter of natural gas proved reserves have been estimated  by OIL, ONGC, Cairn Vedanta Ltd. & Focus Energy in Jaisalmer Basin & Barmer-Sanchore Basin. Natural Gas is being produced by OIL from Tanot- Dandewala & by Focus Energy Ltd. from Shahgargh areas of Jaisalmer Basin for the supply to Ramgarh Power Plant. OIL and Focus Energy have entered into an agreement with GAIL (India) Ltd and Rajasthan Rajya Vidhyut Utpadan Nigam (RRVUN) for supply of Natural Gas to Ramgarh Power Point. Production of Natural gas has also been commenced from Raageshwari Deep Gas Field and other Fields (Associated Gas) of Barmer Basin, and through national grid is being supplied to GNFC, GSPC &  KRIBHCO etc.

Value addition of Petroleum Resources (Refinery Cum Petrochemical Complex and Ancillary Units based on petro & petrochem products)

MoU entered between GoR and HPCL on 18.04.2017 for setting up of 9 MMTPA Refinery cum Petrochemical Complex in Joint Venture.

This project is integrated with Refinery & Petrochemical Complex, which is first of its kind in India.

Project Details

•  Revised Project Cost – Rs 72,937 cr

• Debt Equity Ratio – 2:1

• Equity Share – HPCL 74% & GoR 26%

• Products – Fuels & Petrochemicals, BS-VI standard

• Project Location – Pachpadra, Balotra

Benefits to the State

• 1.5 to 2.5 MMTPA Rajasthan crude shall be utilized. In case of non-availability of Rajasthan crude, it would be substituted by imported Arab Mix crude for the project life of the refinery. 

• Additional Revenue to the State Government by way of VAT on indigenous crude petro-products and petro chem products.

Socio-Economic Impact of the Refinery-cum-Petrochemical Complex:

•The proposed Refinery has the potential to become an anchor industry for developing downstream and other service sector industries in and around the region.

• Due to its very nature, petrochemicals is an ‘enabler’ industry playing a vital role in the functioning of virtually all key sectors in the economy including packaging, agriculture, infrastructure, healthcare, textiles, automobile and consumer goods. Petrochemicals provide inputs which enable almost all other sectors to grow.

Revenue from Petroleum Sector

Petroleum Sector has now become the important source of Revenue in the State since commercial production of crude oil & natural gas from Barmer-Sanchore Basin has commenced from 29.08.2009 & 23.03.2013 respectively and production of natural gas from Jaisalmer basin has been enhanced substantially on commencement of production of natural gas from Shahgarh sub- basin from 08.07.2010 in addition to the Tanot-Dandewala, Manhera-Tibba of ONGC and OIL. Revenue is accured in terms of royalty on production of crude oil & natural gas, PEL fees, dead rent etc.

Revenue accrued during 2008-09 was Rs 8.20 Crore which has been enhanced significantly from 2009-10 onwards after production of Crude Oil from Barmer-Sanchore Basin. Hence, revenue accrual during 2010-11 and 2011-12 was Rs 1630 crores and Rs 3435.61 crores respectively. However, the Revenue was enhanced during 2012-13 to Rs 5069.88 crores as per production profile of 175,000 barrels per day and Rs 5953.11 crores were accrued against the target of Rs 5500 crores during 2013-14. Subsequently, revenue was downed to Rs. 4848.70 against the target of Rs 5300 crores during 2014-15 due to rapid fall in crude oil prices and dollar exchange rate. Revenue of Rs 2341.43 crores accrued during 2015-16 due to continued price fall and accrual restricted to Rs 2331.73 crore during 2016-17and slightly enhanced to Rs 2579 crore during 2017-18. Revenue realization during 2017-18 was Rs. 2579.38 crores, which has been enhanced to Rs 3883.22 Crores in 2018-19. But Revenue accured during 2019-20 has been Rs 3320.10 to Crores due to price fall. Adverse impact on Crude prices due to COVID-19 pandemic, revenue realization during 2020-21 was Rs. 1904.79 crores. In  FY 2021-22 total revenue of Rs. 3995.40 crores has been accured. In FY 2022-23 total revenue of Rs. 4889.17 crores has been accured. In Fy 2023-24 to total revenue of Rs. 3425.08 crores has been accured. 

Objective

A separate Petroleum Directorate is functioning for Hydrocarbon administration by monitoring of upstream E&P Sector for planned development of the sector in the state. 

To deal the regulatory issues related with Petroleum Exploration Licenses (PELs) & Petroleum Mining Leases (PMLs) and to collect the revenues on production of Crude Oil & Natural Gas.