11 Mar India unlocks more than $36 bn of O&G reserves
The Indian government announced policy measures yesterday to assist oil and gas explorers unlock hydrocarbon valuables worth US$36.6 billion.
The move has been taken in order to maintain and develop jobs in the sector whilst oil and gas prices remain low.
After improvements, gas and oil companies will have more freedom to establish the price of gas from new discoveries not yet in production.
Oil Minister Dharmendra Pradhan told a news conference the new reform will be subjected to a ceiling price set according to the landed price of alternatives such as liquefied natural gas, fuel oil, naphtha and coal. This will be reviewed every six months.
This action will help jump gas output by almost 35 million cubic metres a day, Pradhan said.
The country’s top companies such as Oil and Natural Gas Corporation and Gujarat State Petroleum Corp will benefit from the move.
The decisions are presumed to jumpstart investment in India’s exploration and production sector by reducing government involvement and generating foreign investment in Indian oil and gas.
Pradhan stated, “Resources worth $38.92 billion will be brought to production as a result of today’s decision.”