For the first time in many years, domestic production of crude has been able to keep pace with its increased demand.

In the first nine months of the current fiscal, 26.6 per cent of the country's needs for crude were met from domestic production -- the same as in the previous year.

This is creditable considering that the percentage of total requirement met from domestic production has been going down from 33.5 per cent in 1999-2000, to 28 per cent in 2000-01, and 26.6 per cent in 2001-02.

Only this year, domestic production of crude has picked up to maintain the self-sufficiency at the previous year's level.

This is despite the fact that the demand for petroleum products during the current financial year is expected to grow 2.8 per cent over the previous year  -- from 1,00,432 thousand metric tonnes (tmt) to 1,03,289 tmt.

According to the petroleum ministry, domestic production of crude during 1999-2000 was 29.497 million tonnes, which moved up to 29.979 million tonnes the next year, and dropped to 29.628 million tonnes in 2001-02. Domestic production of crude during April-December 2002 was 23.145 million tonnes.

The crude requirement in the country during 1999-2000 was 85.709 million tonnes, 103.108 million tonnes in 2000-01, 106.542 million tonnes in 2001-02, and 81.579 million tonnes in the first nine months of the current financial year.

The petroleum ministry said this was the result of the steps taken by the government to increase domestic production of crude.

These include increase in exploration efforts through the new exploration licensing policy and the nomination petroleum exploration licences held by national oil companies.

In the first three rounds of NELP, 70 production-sharing contracts have been signed with an estimated investment of Rs 14,500 crore (Rs 145 billion) in three phases.

Moreover, there has been improvement in the recovery factor from the existing major oilfields by implementing enhanced oil recovery schemes.

Oil and Natural Gas Corporation has formulated enhanced oil recovery schemes for its 15 major fields, including Mumbai High, at the cost of around Rs 11,000 crore (Rs 110 billion).

Oil production from Mumbai High has increased 9 per cent and gas production 4 per cent after the commencement of implementation of re-development plans in 2001.

Domestic production has also been helped by faster development of newly-discovered fields and increased use of new technology for seismic surveys such as 3-D and 4-D, workover operations, stimulation operations, and drilling of wells in producing areas for better management of reservoir and optimal recovery of hydrocarbons.