Indian reforms aim to unlock $40 billion of oil and gas output

India said on Thursday it hoped to unlock gas and oil resources worth almost $40 billion by simplifying licensing rules and offering price incentives to recover gas from difficult offshore fields.

Energy demand in India far outstrips consumption, but regulated low prices for gas from prolific but challenging deepwater fields have deterred investment in the sector.

Under the reforms, companies will have more freedom to set the price of gas from new discoveries and existing finds not yet in production. But they will be subject to a ceiling price set according to the landed price of alternatives such as fuel oil, naphtha, coal and liquefied natural gas, Oil Minister Dharmendra Pradhan told a news conference. The ceiling price would be reviewed every six months. Read More…

Indian reforms aim to unlock $40 billion of oil and gas output