Exclusive: Finance Ministry asks ONGC, OIL to fund India’s hydrocarbon hunt; promises to reimburse losses

The Exclusive Finance Ministry has recently announced that it will provide funding to ONGC and OIL to support India's hydrocarbon exploration efforts. This funding is intended to help these companies drill four stratigraphic wells in Category II and Category III basins in India's offshore region. These wells are critical for obtaining the data needed to create a robust model of petroleum reserves in the country.

The Petroleum Ministry had previously sought budgetary support from the Finance Ministry to fund these exploration efforts. The Finance Ministry has now agreed to provide this funding, with the understanding that it will be used solely for the purpose of drilling these wells and obtaining the necessary data. In addition, the Finance Ministry has promised to reimburse any losses incurred by ONGC and OIL as a result of these exploration efforts.

This funding is an important step towards increasing India's hydrocarbon production and reducing its dependence on imported energy sources. By drilling these wells and obtaining accurate data on petroleum reserves, ONGC and OIL will be better equipped to make informed decisions about where to invest in future exploration and production efforts. This, in turn, will help to create new jobs and stimulate economic growth in the country.

It is worth noting that hydrocarbon exploration is a complex and expensive process, requiring significant investment in equipment, personnel, and technology. The funding provided by the Finance Ministry will be critical for ONGC and OIL to successfully carry out these exploration efforts and obtain the data needed to create a robust model of petroleum reserves.