| Date: |
20-02-2016 |
| Subject: |
Dharmendra Pradhan, Oil Ministry to pitch small oil fields to global investors |
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NEW DELHI: The government will showcase its small, discovered oilfields to global investors at a global energy conference in Houston next week, seeking participants for the proposed auction of small oilfields, officials said.
Oil minister Dharmendra Pradhan and top oil ministry officials will pitch the oilfields to top executives of the global oil and gas industry at the IHS CERAWeek Conference beginning Monday.
Some state oil firms' executives will join the government officials for the event where nearly a dozen oil ministers and several CEOs of top energy firms are slated to speak.
The government hopes to attract investors to develop the small, discovered fields that will be offered with attractive terms such as free market price for both oil and gas as well as a revenue-sharing contract that minimises government intervention in oilfield affairs. Before the planned auction of discovered fields, the government had offered unexplored areas along with a contract that required profit sharing which required detailed auditing of accounts. It also controlled the price of natural gas. The planned offer of small fields would be on much more attractive terms.
The proposed auction will be a test for these key provisions as a tool to attract investments, especially because the government is considering to offer similar terms in its proposed policy for the major fields as well.
Earlier this month, oil secretary KD Tripathi had said investors' interest at roadshows in India and abroad will determine the timing of the auction.
With this auction, the government has been hoping to infuse some action in the upstream sector that has been quite stagnant for some time.
Crude oil production has marginally fallen this fiscal year and the country's crude import dependence has gone above 80% at a time Prime Minister Narendra Modi wants the country to slash it by 10 %.
Lower crude oil prices have also slowed exploration activity in the country and oil firms have cut capital spending that can result in further lowering of production in the future.
Source : economictimes.indiatimes.com
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