Government cuts fuel imports to attract foreign investments

India: The Indian government is planning to reduce the oil & gas import fuel by at least 10% in next six years by investing USD27 billion in the oil & gas activities. This ambitious plan would provide great relief to the global oil & gas service providers who have been struggling to bag any major contract from the last year due to slump in crude oil prices. It is also expected that about 90% of the spending will go to service companies who are involved in drilling to testing and providing infrastructure facilities. Companies like Reliance is planning to restart work in its four offshore oil & gas blocks. ONGC is contracting more than twelve jack- up rigs for development program in KG basin. This provides the service provider companies like Schlumberger, Halliburton, Baker, Technip etc. a big opportunity to expand their business.

TechSci Research depicts the ongoing exploration of hydrocarbons will have a major impact on domestic production. India meets 80% of its crude oil demand through imports leading to huge import bills. The domestic increase in production will help reduce the budget deficit. It will also lead to increased investment by private sector in India’s oil and gas exploration industry. The ongoing Exploration & Production (E&P) activities will give a major boost to India Oil Field Services market.

According to a released report of TechSci Research, “India Oilfield Services Market Forecast & Opportunities, 2020”, the country’s oilfield services market is projected to surpass US$ 7.8 billion by 2020, on account of anticipated increase in oil and gas E&P activities. Onshore oilfield services segment holds majority share in India’s oilfield services market; however, the offshore oilfield services is forecast to exhibit higher growth during 2015- 2020.