Executive Summary:
This document provides answers to Lok Sabha Unstarred Question No. 1915 regarding abandoned oil and gas exploration and production sites in India. It details the status of site restoration, funds allocated and utilized, environmental impact assessment guidelines, and monitoring mechanisms for these sites from FY 2020-21 to FY 2024-25. The response includes state-wise and contractor-wise data in Annexure A and financial details in Annexure B.
Key Points / Main Content:
Abandoned Sites and Restoration:
* 721 oil and gas exploration and production sites were declared abandoned between FY 2020-21 and FY 2024-25.
* Annexure A provides state-wise and contractor-wise details of abandoned sites, including the status of site restoration (completed, in progress, or yet to be initiated).
Financial Information:
* Annexure B details the funds allocated and utilized by oil and gas companies for site restoration activities during the last five fiscal years, company-wise.
Environmental Impact Assessment (EIA):
* The Ministry of Environment, Forest and Climate Change (MoEFCC) follows the EIA Notification 2006, as amended, which requires a decommissioning and abandonment plan for drill site restoration to its near-original condition.
* Offshore oil and gas activities are categorized as A under Item 1b, requiring prior clearance from the Expert Appraisal Committee (EAC) at the central level.
* The EAC appraises the Environmental Management Plan (EMP) and may stipulate additional site-specific environmental safeguards. Environmental Clearances (EC) are granted by the MoEFCC based on the EAC's recommendations.
Monitoring and Accountability:
* Site restoration is governed by the Oil Industry Safety Directorate (OISD) and the Directorate General of Hydrocarbons (DGH), who approve Site Restoration or Decommissioning Plans.
* Production Sharing Contracts (PSCs) and Revenue Sharing Contracts (RSCs) include provisions for a Site Restoration Fund (SRF) or Abandonment Fund.
* Fund release from the SRF is subject to satisfactory decommissioning work progress and DGH approval.
* The IA-Compliance Monitoring Division (CMD) of the MoEFCC, through its Regional Offices (ROs) and Sub-Regional Offices (SROs), monitors EC compliance, conducts inspections, and submits monitoring reports to MoEFCC.
Impact Analysis:
Oil and Gas Companies:
* Impact: Required to allocate and utilize funds for site restoration activities, as well as contribute to Site Restoration Funds.
* Action Required: Execute site restoration plans, provide accurate financial reporting, and adhere to OISD and DGH guidelines.
Ministry of Petroleum and Natural Gas:
* Impact: Responsible for overseeing the abandonment and restoration of oil and gas sites.
* Action Required: Monitor the progress of site restoration, ensure financial accountability, and enforce regulatory compliance through the DGH.
Ministry of Environment, Forest and Climate Change (MoEFCC):
* Impact: Responsible for environmental impact assessment and clearance of oil and gas projects.
* Action Required: Ensure decommissioning and abandonment plans are incorporated into EIAs, conduct thorough appraisals through the EAC, and monitor compliance with EC conditions through the CMD and its regional offices.
Directorate General of Hydrocarbons (DGH):
* Impact: One of the approving authorities for submitted Site Restoration or Decommissioning Plans.
* Action Required: Provide technical scrutiny of the submitted Site Restoration or Decommissioning Plans and approve the release of funds from the SRF.
Key Entities Referenced
Environment Impact Assessment EIA Notification 2006: Indian regulation outlining the process for environmental impact assessments.
PETROLEUM AND NATURAL GAS: The ministry responsible for matters related to petroleum and natural gas.
Ministry of Environment, Forest and Climate Change MoEFCC: The Indian government ministry responsible for environmental protection and forestry.
Expert Appraisal Committee EAC: Committee at the central level that appraises the EMP and may stipulate additional site-specific environmental safeguards.
Directorate General of Hydrocarbons DGH: An Indian regulatory body involved in the approval of Site Restoration or Decommissioning Plans.
Production Sharing Contracts PSCs: Agreements related to oil and gas production, which include provisions for Site Restoration Fund (SRF).
Revenue Sharing Contracts RSCs: Agreements related to oil and gas production, which include provisions for Abandonment Fund.
Assam: A state in India with a significant number of abandoned oil and gas exploration and production sites.
LOK SABHA
UNSTARRED QUESTION NO. 1915
TO BE ANSWERED ON 31st July, 2025
Abandoned Oil and Gas Exploration and Production Sites
1915. Shri G M Harish Balayogi:
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) the details regarding oil and gas exploration and production sites (onshore and
offshore) that have been declared abandoned across the country during each of the last five
years, State- wise and contractor-wise;
(b) the details of such abandoned sites where site restoration has been completed is
currently in progress and is yet to be initiated, State-wise and contractor-wise;
(c) the details of the funds allocated and utilised for site restoration activities by oil and gas
companies during each of the last five years, company-wise;
(d) whether the Government has issued any comprehensive guidelines for conducting
Environmental Impact Assessments (EIAs) specific to the decommissioning of oil and gas
assets and if so, the details thereof;
(e) if not, whether the Government proposes to formulate such guidelines and if so, the
details thereof; and
(f) the details regarding the monitoring and financial accountability mechanisms currently
put in place to ensure scientific, timely and environmentally sound site restoration of
abandoned oil and gas assets?
ANSWER
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी
((cid:373)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROELUM & NATURAL GAS
(SHRI SURESH GOPI)
(a) to (c): During last five years (FY 2020-21 to FY 2024-25), a total of 721 oil and gas
exploration and production sites (onshore and offshore) have been declared abandoned. The
details regarding these sites and where site restoration has been completed or is currently in
progress or is yet to be initiated during each of the last five years, State- wise and contractor-
wise is provided at Annexure A.The details of the funds allocated and utilised for site restoration activities by oil and gas
companies during each of the last five years, company-wise is provided at Annexure B.
(d) & (e): As informed by Ministry of Environment, Forest and Climate Change (MoEFCC),
according to the Environment Impact Assessment (EIA) Notification 2006, as amended,
Terms of Reference (ToR) are issued to the projects for preparation of Environmental Impact
Assessment (EIA) and Environmental Management Plan (EMP) incorporating a
decommissioning and abandonment plan for restoration of the drill sites to its near original
condition.
As per the EIA Notification 2006, offshore oil and gas exploration and production activities
are categorized as ‘A’ under Item 1(b), necessitating prior clearance from the Expert
Appraisal Committee (EAC) at the central level. The EAC appraises the EMP and
subsequently may stipulate additional site-specific environmental safeguards. Based on the
recommendations of the EAC, the Environmental Clearances (EC) are granted to the project
by the MoEFCC.
(f): The restoration of abandoned oil and gas sites is governed through a combination of
regulatory oversight, technical scrutiny and financial safeguards through OISD and the
Directorate General of Hydrocarbons (DGH) who serve as the approving authorities for the
submitted Site Restoration or Decommissioning Plan. This inter-alia includes well plugging,
dismantling of surface infrastructure, waste management and restoration of the site to its
original or an environmentally acceptable condition. To ensure financial accountability, the
Production Sharing Contracts (PSCs) and Revenue Sharing Contracts (RSCs) include
provisions for the establishment of a Site Restoration Fund (SRF) or Abandonment Fund,
into which operators contribute over the productive life of the field. Fund release proposals
from the SRF account are however subject to satisfactory decommission work progress and
with the approval of the DGH.
Further, the compliance and monitoring of the EC is dealt by IA-Compliance & Monitoring
Division (C&MD) of the MoEFCC through its Regional Offices (ROs) and Sub-Regional
Offices (SROs). In accordance with the Standard Operating Procedure (SOP) established,
ROs/SROs conduct periodic inspections and prepare monitoring reports that are submitted to
MoEFCC for detailed evaluation and follow up action.
******Annexure A Referred to Part (a) to (c) for Lok Sabha Unstarred Question No. 1915 to be
answered on 31.07.2025 regarding Abandoned Oil and Gas Exploration and Production Sites
Details of Site Abandoned & Restoration During last Five Years (2020-21 to 2024-25)
No. of Sum of No.
No. of wells
wells for of wells for
No. of wells for which
Operator State which SR which SR
Abandoned SR
is in is yet to be
Completed
progress initiated
AWEL Western Offshore 1 1 0 0
BPRL Gujarat 3 3
GAIL Gujarat 1 1
GSPC Gujarat 10 10 0 0
M/s Megha Engineering
& Infrastructure Limited Gujarat 1 0 0 1
OIL Assam 89 88 1 0
Eastern Offshore 8 9 0 0
Mizoram 0 2 1 1
Orissa 2 2 1 0
Rajasthan 15 19 0 0
Arunachal Pradesh 2 2 0 0
ONGC Andhra Pradesh 24 0 0 24
Assam 86 0 0 0
Eastern Offshore 1 1 0 0
Gujarat 265 115 13 47
Jharkahnd 2 0 0 2
kutch-
Saurastra_offshore 1 1 0 0
Madhya Pradesh 10 9 1
Rajasthan 12 6 2 4
Tamilnadu 17 26 1 0
Tripura 18 1 11 6
West Bengal 2 1 1 0
Western Offshore 116 116 0 0
PMT-JV Western Offshore 0 38 0 0
RIL Eastern Offshore 7 7 0 0
Selan Exploration
Technologies Ltd Gujarat 2 2 0 0
Vedanta Assam 8 1 0 7
Gujarat 10 10
Rajasthan 8 8
Total 721 448 44 111
Source: DGHAnnexure B referred to Part (a) to (c) for Lok Sabha Unstarred Question No. 1915 to be answered on 31.07.2025 regarding Abandoned Oil and Gas
Exploration and Production Sites
Details of the funds allocated and utilised for site restoration activities During last Five Years (2020-21 to 2024-25) (Rs.)
Operator 2020-21 2021-22 2022-23 2023-24 2024-25
Fund Fund Fund
Fund Allocated Fund Utilized Allocated Fund Utilized Allocated Fund Utilized Allocated Fund Utilized Fund Allocated Fund Utilized
PMT-JV 1,29,36,74,254 1,29,66,98,304 20,05,41,379 20,20,66,552 2,64,73,10,437 2,36,36,66,925 0 28,43,30,358
OIL 1,00,00,000 40,89,520 50,00,000 63,47,757 50,00,000 71,98,049 54,42,878 1,61,74,244 5,59,79,948 5,76,65,809
ONGC 44,00,00,000 23,00,00,000 2,67,00,00,000 1,09,00,00,000 3,19,00,00,000
Total 1,30,36,74,254 1,74,07,87,824 20,55,41,379 43,84,14,309 50,00,000 2,67,71,98,049 2,65,27,53,315 3,46,98,41,169 5,59,79,948 3,53,19,96,167
Source: DGH