Oil Firms Need To Bring In Foreign Players To Open Resources: Oil Minister Pradhan

The nation’s oil and gas output has been stagnant for years

Oil minister Dharmendra Pradhan asked exploration companies to consider farming out their acreages to global players with advanced technology to expedite development and raise oil and gas output. India, the world’s third largest oil importer and consumer, depends on foreign purchases for over 80 per cent of its oil needs. The nation’s oil and gas output has been stagnant for years, forcing it to raise reliance on imports to meet rising fuel demand.

“The government will grant petroleum mining lease rights but the companies should consider a farm-out (of a stake) to get global technology players,” Pradhan said in Hindi. Indian exploration companies should work at “exponential speed” to unlock resources, Pradhan said at the production sharing signing ceremony of 11 oil and blocks by state-run Oil and Natural Gas Corp and Oil India Ltd.

India’s exploration licensing rounds have so far seen a lukewarm response from global oil majors, with most of the blocks awarded to local companies, mainly ONGC and Oil India. The companies have to reject a “business as usual approach” and adopt a professionally-run “commercially viable and technological friendly” model to boost output, Pradhan said.

.

He urged Indian exploration companies to function like holding firms and share revenue and profit with their new technical and financial partners. This will also boost the nation’s resources and add to the federal exchequer, he said.

.

Disclaimer: This post has not been edited by our staff and is published from a syndicated feed. The Original Source of this post can be found at Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest

‘It’s a habit ofNaidu to politiciseevery issue’

Government Chief Whip G. Srikanth Reddy has said former Chief Minister N. Chandrababu Naidu should attend the Assembly session on the first day (November)...

Coronavirus | Police shoot dead inmate amid riot in virus-hit Sri...

Prisons across the country has been experiencing weeks of unrest as COVID-19 cases surged Guards opened fire Sunday to contain a prison riot near...

Ally BPF dares BJP to drop its Ministers from Assam Cabinet

Bodoland Territorial Council (BTC) elections have driven the wedge between the two parties deeper The upcoming Bodoland Territorial Council (BTC) elections in Assam have driven...

More Articles