BP seeks $1.5 bn incentive for deepsea gas

Europe’s second-biggest oil firm BP plc has asked Prime Minister Manmohan Singh for a $1.5 per mn additional “incentive” for deepsea fields over and above the near doubling of domestic gas price suggested by the Rangarajan Committee.

Europe’s second-biggest oil firm BP plc has asked Prime Minister Manmohan Singh for a $1.5 per mn additional “incentive” for deepsea fields over and above the near doubling of domestic gas price suggested by the Rangarajan Committee.

BP chief executive Bob Dudley on April 15 wrote to the prime minister seeking clear roadmap to market determined pricing of natural gas saying it will help the country cut its import of liquefied natural gas (LNG).

He said the Rangarajan panel suggested pricing model, which would lead to domestic rates going up from $4.2 per million British thermal unit to about $8, would be roughly half way to international prices.