Positioning for Growth: Parveen Industries and India's Evolving Upstream Oil and Gas Sector

India’s oil and gas industry stands at a pivotal moment. As the world’s third-largest consumer and importer of crude oil, India is heavily reliant on external sources for over 85% of its crude needs. This reliance has led to increasing vulnerabilities, including exposure to fluctuating global oil prices and geopolitical tensions. To combat this, India has placed a renewed focus on bolstering its exploration and production (E&P) capabilities, seeking to tap into its significant yet underexplored geological resources. For Parveen Industries, which specializes in upstream equipment, this is a critical opportunity to contribute to the nation's energy self-sufficiency.

Our Oil Minister Hon’ble Hardeep Singh Puri has highlighted the urgency of India’s energy challenge. Speaking at the recent Urja Varta conference, he emphasized the critical role of the E&P sector in reducing reliance on imports while providing affordable and sustainable energy. India’s sedimentary basins hold an estimated 651.8 million tonnes of crude oil and 1,138.6 billion cubic meters of natural gas, but currently, only 10% of this vast resource is under exploration. This percentage is set to rise to 16% by the end of 2024, and the government has plans to increase exploration acreage to 1 million sq. km. by 2030.

India's upstream sector is poised for significant growth, with investment opportunities worth $100 billion by 2030. This presents a major market for upstream equipment manufacturers like Parveen Industries. With our extensive manufacturing capabilities, including seven state-of-the-art plants across India and over 1000 employees, we are fully equipped to support the industry's ambitious targets. Our plants, including a forging facility with a capacity of 600 metric tonnes per month and a foundry plant with three induction furnaces, ensure we can meet the increasing demand for high-quality, reliable upstream equipment.

Our product offerings are tailored specifically to the needs of the E&P sector. We provide equipment certified to the highest international standards (API 6A, API 16C, API 11D1, and more), including wellheads, Christmas trees, gate valves, chokes, and manifolds. These products are essential to oil exploration, production, and pressure control operations, ensuring efficiency and safety in even the most challenging environments. As India looks to expand exploration into previously untapped areas, such as the Andaman region, our role in supplying world-class equipment becomes even more critical.

While the refinery sector is crucial for downstream activities, India's future energy security depends on increasing its domestic crude production capabilities. The country’s oil imports have become unsustainable, particularly as global oil demand is expected to reach 110.2 million barrels per day by 2028, with India contributing significantly to this growth. With the government aiming to increase exploration in regions that were once deemed "no-go" zones, and the introduction of policies like the Discovered Small Field (DSF) Policy, the potential for upstream expansion is immense.

The government’s proactive measures are opening the doors to new opportunities for companies like Parveen Industries. The DSF Policy, in particular, has attracted $2 billion in investments and brought many new players into the E&P market since its inception in 2015. The policy has enabled exploration activities in restricted zones, fostering investments in regions such as the Andamans, where significant geological potential remains untapped. These developments create a demand for technologically advanced equipment, and Parveen Industries is ready to deliver.

We are particularly encouraged by the formation of the Joint Working Group (JWG), which brings together private E&P operators, National Oil Companies (NOCs), and key stakeholders to address issues related to ease of doing business, regulatory adequacy, and industry growth. Parveen Industries intends to actively participate in these discussions, contributing our expertise and advocating for policy frameworks that support innovation and investment in the upstream sector.

As India gears up to expand its exploration efforts, Parveen Industries is not just a supplier; we are a partner in the country’s quest for energy independence. Our focus on research and development ensures that we stay at the forefront of technological advancements in the E&P sector. From smart completion equipment to advanced pressure control systems, we are committed to providing the tools and technology needed to unlock India’s vast energy potential.

Globally, we are also well-positioned to support emerging markets in Asia and Africa. As these regions ramp up their oil production capacities, demand for upstream equipment will continue to grow. Parveen Industries is uniquely positioned to serve these markets, leveraging our extensive experience and manufacturing capabilities to meet global demand while maintaining our focus on India’s domestic requirements.

While the E&P sector will drive India’s energy future, the downstream segment—refining crude oil into finished products—remains an integral part of the value chain. Recent announcements, including ONGC’s plans for an $8.3 billion refinery and petrochemicals project in Uttar Pradesh, and BPCL’s proposed $3.8 billion investment to expand the Bina refinery in Madhya Pradesh, underscore the holistic growth of India’s energy sector. These investments will help India increase its refining capacity by 22% over the next five years, ensuring the nation can meet its rising demand for fuels and petrochemicals.

However, the real opportunity lies upstream. The vast, untapped resources in India’s sedimentary basins, coupled with forward-looking policies and significant investment incentives, represent a game-changing moment for the country’s energy landscape. At Parveen Industries, we are proud to be at the forefront of this transformation, providing the equipment, technology, and expertise necessary to drive the next phase of India’s oil and gas exploration.

In the years to come, India’s push for self-sufficiency in energy will require not just policy reforms, but also collaboration between private industry, government bodies, and technology providers. Parveen Industries is committed to playing a pivotal role in this collaborative effort, ensuring that India’s oil and gas sector is equipped for the future. As the country continues its exploration of "Yet to Find" resources, we will be there every step of the way, powering the journey with innovative equipment and sustainable solutions.

The future of energy in India is bright, and Parveen Industries is excited to help shape that future. Together, we will unlock the full potential of India’s oil and gas resources, ensuring that the country remains at the forefront of the global energy industry for years to come.