Reinstating the confidence of global investors into India’s oil and gas sector tops the priority of the new petroleum minister Dharmendra Pradhan, along with ending the volley of arbitration cases that exists between the petroleum ministry and private developers.
The petroleum ministry officials confirmed that a new policy framework is underway before new oil and gas exploration blocks are offered under the New Exploration Licensing Policy’s (NELP 10) tenth round expected this fiscal.
Pradhan recently told a gathering of global investors at the World Petroleum Congress in Moscow that to facilitate investments in the sector, his foremost priority is to frame policies that would ease the way for large foreign investments in the oil and gas sector.
“The ministry is already in the process of bringing out amendments and new policies,” said Pradhan. “Creation of a policy environment, which is predictable, transparent and fair, would be a very important,” he added.
Increasing domestic crude oil production is important to combat the excessive volatility in the global crude oil prices due to continuous geo-political disturbances in the Middle-East, which controls a big chunk of oil supplies coming into India.
“For an oil importing nation like ours, high global oil prices can lead to serious fiscal worries... it is important to bring in advanced technologies and global players to the country to produce more oil and gas,” said a senior official of an oil company.