New Delhi : The Committee on Public Undertakings has asked the Oil Ministry to submit a comprehensive outcome-linked report detailing how newly awarded fields and the Open Acreage Licensing Policy (OALP) rounds will boost India’s flagging crude oil production over the medium term.
The panel appreciated the Ministry’s efforts towards multi-pronged policy measures and structural reforms, particularly the rollout of subsequent OALP bidding rounds, release of substantial offshore “No-Go” areas, and the extensive financial commitments toward seismic data acquisition. It also welcomed the active implementation of energy transition schemes.
However, it emphasised the need for improving correlation between increasing capex and declining domestic crude oil output, which it feels remains an area requiring closer attention.
Despite a steady increase in capex by petroleum and natural gas sector CPSUs from around ₹1.34 lakh crore in FY21 to a projected ₹1.70 lakh crore in FY25, crude oil production declined from 34.20 mt in FY19 to a projected 28.70 mt in FY25, while natural gas output has shown modest growth, it added.
“The Committee considers the current response as an interim reply and expect a comprehensive outcome-linked report detailing how the newly awarded fields and OALP rounds translate to tangible volume additions over the medium term,” the panel said.
The committee was reviewing the actions taken by the government on the recommendations in its Twenty-First Report on review of the performance of petroleum and natural gas sector Central PSUs. The report was presented to Lok Sabha on December 11, 2025, and action taken replies were received from the Oil Ministry on May 14, 2026. The panel presented the report to Lok Sabha on Thursday (August 6).
The Committee also stressed that substantial investments in exploration and production (E&P) should be accompanied by clearly defined performance benchmarks, periodic evaluation and accountability mechanisms.
“The Committee also emphasises that the real returns on these massive investments must reflect in reversed production curves—changing the trajectory of oil or gas output from a period of continuous decline to a period of growth or stabilisation,” it added.
While recognising the long gestation nature of exploration activities and the positive impact expected from recent policy reforms, the panel said it should be apprised of the measurable production outcomes arising from newly awarded blocks and major capex investments.
The Ministry in its reply said the government launched the Hydrocarbon Exploration and Licensing Policy (HELP) in 2016. Under this, OALP was started.
During the last three years, a total of 38 exploration blocks under OALP bid Round VIII and IX covering 1,72,912.95 sq km in offshore areas have been awarded to successful bidders. Geoscientific survey of the blocks awarded under these OALP Bid Rounds indicate enhancement in the country’s existing resource potential, it added.
Further, OALP bid Round X offering 25 exploration blocks covering 1,91,986.21 sq km in 6 states, was launched on April 15, 2025.
“Also, there is a natural decline in production y-o-y from mature fields. To help arrest such natural decline, the Government approved the Policy framework in 2018 to promote and incentivise Enhanced Recovery (ER)/Improved Recovery (IR)/Unconventional Hydrocarbon (UHC) production methods through fiscal incentives in the form of partial waiver of royalty and cess,” the Ministry said in its response.
