World Energy Outlook 2007

Box 17.1: India's Emergency Oil Stocks (Continued)
phase. The following phases could be financed through public-private
partnerships. The construction of the first phase started in the second half
of 2007.
The oil industry, including government-owned companies, is currently
under no obligation to hold emergency stocks or to release oil in the event
of an emergency. A decision has not yet been taken, but it is understood
that the government will use the emergency stocks only in the event of a
supply disruption that affects India. International co-ordination would
render the use of these stocks more effective in the event of a supply
disruption.
Natural Gas Supply
Resources and Reserves
India's proven reserves of natural gas amounted to 1 101 bcm at the end
of 2006, equal to 0.6% of world reserves (Cedigaz, 2007). According to
official Indian data, "proved and indicated" reserves amounted to 1075 bcm
on 1 April 2006. IHS data show that proven and probable reserves in
discovered fields yet to be produced amounted to about 1 500 bcm in 2005.
About two-thirds of remaining gas reserves are non-associated gas (Table 17.4).
Most reserves are located offshore (88% of non-associated gas and 56% of all
gas reserves). The breakdown of the reserves by field shows that reserves of
associated gas fields currently producing are about 49% depleted. Although
123 associated gas fields are still awaiting appraisal or development, they are
not expected to add more than 100 bcm to reserves. The potential for
boosting non-associated gas production is greater, as the 29 fields currently in
production are only 30% depleted and the 154 discovered fields not yet
producing contain almost 900 bcm of proven and probable reserves. The
prospects for Indian gas production hinge, therefore, on the development of
non-associated gas fields.
The Krishna-Godavari sedimentary basin on the east coast holds just over half of
India's proven and probable reserves and the Mumbai basin on the west coast
another 23%. The Cambay basin and the Assam shelf together account for 16%.
The Krishna-Godavari basin is mostly located offshore; it holds more than 86%
of India's offshore non-associated gas reserves and 62% of all offshore reserves.
The fields of the Mumbai basin are all offshore, with more than 80% of the gas
associated with oil. This basin represents about 50% of all associated gas reserves.
However, this basin is mature as this is, with the Assam shelf, one of the two longstanding
producing regions of India, thanks to two major oil and gas fields,
Mumbai High and Bassein, both of which were discovered in the mid-1970s.
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Chapter 17 - Reference Scenario Supply Projections 497