The government on Thursday announced new rules for future exploration and production of oil and gas blocks in its efforts to attract private investment and increase domestic production.
India imports four out of every five barrels of crude oil it consumes and is likely to shell out more than $100 billion on oil purchases in 2018/19.
“The emphasis of the new rules is for raising hydrocarbon production,” said petroleum minister Dharmendra Pradhan in New Delhi.
Under the new rules, producers will be given pricing and marketing freedom that is currently non-existent in natural gas blocks in India. Explorers will also be given financial incentives for early production from their blocks, Pradhan said.
