The Oil Ministry is going all out to make sure that hurdles and issues faced by companies and investors in the oil and gas production sectors are resolved. With energy transition and increase in petrol and diesel prices, the pressure on the government is to increase oil and gas from domestic sources.
CNBC-TV18 has learned that the ministry is looking to iron out issues of compliance for the exploration and production companies in the oil and gas sector. It is also understood that the ministry plans start an initiative called Urja Pragati in line with what Pro-Active Governance And Timely Implementation or PRAGATI initiative of the Prime Minister does for the infrastructure sector, where all the issues of streamlining projects are taken up by the PM. The idea is to safeguard investments envisaged over three to four years’ time of $2 billion alone in the oil and gas exploration and production sector.
The Oil Ministry is looking to facilitate this investment over the next four years as it plans to streamline all the issues whether it is with the states or the Director-General of Hydrocarbon (DGH).
Recently, DGH had simplified the process and procedures for production sharing contracts of pre-NELP and NELP blocks. The detriment for the players for increasing production of oil and gas is also the domestic gas prices, which are at an all-time low.
It is yet to be seen how soon this meeting takes place and how it binds together the investors in the exploration and production sector.
Watch the accompanying video of CNBC-TV18’s Anshu Sharma for more details.
(Edited by : Kanishka Sarkar)