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New Delhi : The Union Cabinet chaired by Prime Minister Narendra Modi has approved the policy framework to promote and incentivise Enhanced Recovery (ER)/ Improved Recovery (IR)/ Unconventional Hydrocarbon (UHC) production methods/techniques to improve recovery factor of existing hydrocarbons reserves for augmenting domestic production of oil and gas.
The ER includes Enhanced Oil Recovery (EOR) and Enhanced Gas Recovery (EGR) while Unconventional Hydrocarbon (UHC) production methods include Shale oil and gas production, tight oil and gas production, production from oil shale, gas hydrates and heavy oil. Enhanced Recovery, Improved Recovery and exploration and exploitation of unconventional hydrocarbons are capital intensive, technologically complex and challenging in nature. It calls for supporting infrastructure, logistic support, fiscal incentives and enabling environment.
The strategic objective of the policy is to build a supportive ecosystem through academic and research institutes, industry- academia collaboration and to support and encourage Exploration and Production (E&P) Contractors to deploy ER/IR/UHC Methods/ techniques.
The policy will be applicable to all contractual regimes and nomination fields. This policy initiative is expected to spur new investment, provide impetus to economic activities and generate additional employment opportunities. The Policy is expected to facilitate induction of new, innovative and cutting-edge technology and forging technological collaboration to improve productivity of existing fields, according to a PIB release.
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