Oil India: Nomura, Kotak issue warnings as effective royalty burden climbs to 16.67%
The government’s revision of royalty rates for upstream oil production has raised concerns for Oil India, whose entire production is onshore. This change is expected to significantly impact the company’s profits, while the government aims to protect revenue and promote investments in deepwater and ultra-deepwater fields. Brokerage houses predict a negative impact on ONGC.