India presents opportunities in oil and gas sector at Singapore roadshow

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Singapore | Published: October 26, 2018 3:11:02 PM

The USD 2 billion investment will nearly double the natural gas production to 60 billon cubic metres (bcm) a year by 2022 from the current 33 bcm a year.

India presents opportunities in oil and gas sector at Singapore roadshow (Representative image)

India on Friday presented a wide range of investment opportunities in the upstream oil and gas sector, citing strong interests in the ongoing USD 2.86 billion investment underway to double gas production and drill more than 120 exploration wells over the next four-five years.

A Directorate General of Hydrocarbons (DGH) delegation, led by Director General Dr V P Joy, highlighted in its presentation new improved oil recovery and enhanced oil recovery concepts, introduced earlier this month, which offers flexible terms for exploiting existing discoveries.

“Investments in capital goods for hydrocarbon production is recoverable from earnings,” said Dr Joy while listing out incentives under the new upstream sector policies.

The USD 2 billion investment will nearly double the natural gas production to 60 billon cubic metres (bcm) a year by 2022 from the current 33 bcm a year.

The presentation was for bid round II under the Discovered Small Field Policy (DSF) and Open Acreage Licensing Policy (OLAP).

Fourteen blocks under the OLAP and 25 contract areas covering 59 discovered oil and gas fields under DSF Bid Round II are being offered.

The DSF policy is aligned to Hydrocarbon Exploration and Licensing Policy (HELP), which adopts the revenue sharing model as a step towards improving the ease of doing business in Indian exploration and production (E&P) sector, the DGH said in a press statement here.

It comes with attractive fiscal terms like reduced royalty rates and no cess, single license for all hydrocarbons, pricing and marketing freedom, freedom to exploration throughout contract period, no signature bonus and provision for sharing of common facilities, it said.

Over 175 participants from E&P companies, service providers, investors and entrepreneur attended the Singapore roadshow.

The Singapore roadshow was second after the October 4 Russia event and will continue in London and Abu Dhabi.

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