(a) the normal Internal Rate of Return (IRR) for deep water oil and gas exploration development projects worldwide;
(b) whether the IRR for joint venture and private oil and gas exploration companies in India are comparatively much higher;
(c) if so, the details thereof along with the reasons therefor; and
(d) if not, the IRR for oil and gas companies in India, company-wise?
Minister of state in the Ministry of PETROLEUM AND NATURAL GAS
(SHRI R.P.N. SINGH)
(a) to (d) Under Production Sharing Contract (PSC) regime, Internal Rate
of Return (IRR) is usually not used for evaluating the techno-economics
of the Field Development Plans (FDPs) of oil and gas projects, since
Government of India does not make any investments in these projects.
Such projects are evaluated on the basis of Net Present Value (NPV)
of the projects, which varies from field to field depending on several
factors such as geographical location (onland, shallow water and deepwater)
and size of the fields, geological and reservoir parameters, selected
development concepts, oil/gas reserves, estimated production profile
etc. and hence global bench-marking of IRR of such projects may not be feasible.