NIFTY 50

Oil Ministry mulls relaxing production sharing contracts of pre-NELP and NELP blocks

Updated : June 27, 2018 05:07 PM IST

The Ministry of Petroleum and Natural Gas is planning relaxation of production sharing contracts for pre-NELP (New Exploration Licensing Policy) and NELP blocks, sources privy to the developments told CNBC-TV18.

The rigidity of production sharing contracts and ambiguity of several provisions are hampering exploration and production in the oil and gas sector.

Currently, there is no provision for relaxation of procedures prescribed in production sharing contracts.

The government is mulling to make the sharing of royalty and cess in proportion to participating interest of contractors, like Oil and Natural Gas Corporation's  partnering in six pre-NELP blocks, has ended the current practice of state firm alone bearing state levies for entire production.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV