Of the $3-4 billion that BP plans to invest in its India operations by 2030, around two-thirds is expected to be directed towards upstream activities, including participation in exploration bidding rounds and ramping up exploration efforts, Dube said.
Among global oil and gas majors, BP has one of the strongest upstream presences in India, with its portfolio spanning exploration, deepwater development and production. BP’s upstream presence in India includes its partnership with Reliance Industries in the KG-D6 block, where it holds a 33.33 per cent interest, as well as its growing cooperation with state-run Oil and Natural Gas Corporation (ONGC). BP and ONGC have partnered on technical services for the Mumbai High field and are also working together on exploration opportunities, including stratigraphic wells in India’s offshore basins.
Do you think Samudra Manthan will provide the much-needed fillip to India’s exploration and production sector?
It is a transformative step. The government is supporting 2D and 3D seismic data collection. Exploration is being supported, including stratigraphic wells, which give a sense of whether a reservoir has potential. Common offshore infrastructure and equipment manufacturing and services are needed for offshore exploration. The initiative is supporting these foundational pillars, backed by a $9 billion investment. Previously, the government had amended the ORD Act, simplified procedures and introduced revenue-sharing contracts. This shows that exploration is now a strategic priority for the government. We are already present in India’s E&P sector. It enhances the opportunity for us to further participate in India. The bidding for shallow-water blocks under OALP-X is done and we have participated with Reliance and ONGC. We will be participating in OALP-X for deepwater blocks as well.
What more is required for foreign players to invest in India?
The recent simplification of processes and approvals is positive, but implementation of these reforms will be the real proof. Secondly, since oil and gas are outside the Goods and Services Tax (GST) regime, the input cost of an E&P company goes up, effectively increasing the cost of exploration. This is particularly significant given the high geological risk involved in exploration, with commercial success typically achieved in only a fraction of wells drilled. India is competing with other countries for global capital, many of which have bigger basins and similar fiscal incentives. Samudra Manthan helps make India competitive.
Which business segment will receive maximum investment in the coming years?
Upstream and mobility. We plan to invest $3-4 billion by 2030 across upstream and downstream businesses, with about two-thirds of the investment earmarked for upstream projects and the remaining one-third for downstream activities. In mobility, we have fuel retail outlets, active technology fuel, which gives about 4 per cent more mileage and reduces engine wear, doorstep delivery of diesel to industrial customers and electric vehicle (EV) charging infrastructure.
BP has decided to focus more on hydrocarbons. How does that translate into gains for India?
BP’s focus is on three things: oil and gas, efficient downstream and capital discipline. We are aligned with BP policy as we are doing exactly that.
In what ways could India have navigated the ongoing West Asia crisis?
The closure of the Strait of Hormuz is a big disruption and India has navigated it well by diversifying sources. India ramped up liquefied natural gas (LNG) procurement as the government pushed for piped natural gas (PNG). Procurement of liquefied petroleum gas (LPG) was a challenge, but domestic refiners ramped up production. The lesson would be to ensure rapid progress in building strategic storage and boosting domestic production.
What is your outlook on crude oil prices?
Several countries were utilising their inventory and now they are expected to come to the market. As crude prices hit the lower end of the band, all countries will start buying to fill up their reserves. You’ll see a slightly higher level of prices this year and maybe till next year. I expect prices between $75 and $80 per barrel this year.
Is India’s LNG market attractive for BP?
India’s LNG market is attractive for all foreign players because it is a market with structurally long demand. We have a few long-term LNG contracts with some power plants. We will be bringing more LNG to India. Indian companies procure crude oil through the spot and tender system, but there is definitely scope for optimisation through trading and structured procurement. BP will enhance participation in that.
Have you reported E20-related contamination issues?
We have top fuel quality. We have fibreglass-reinforced plastic (FRP) tanks and piping of global standard. We don’t have contamination risk. We have not received such feedback.
