Huge energy market in India provides unique opportunity to invest in Indian oil and gas sector, Dharmendra Pradhan

Giving a perspective of the paradigm shift in India, in general, and oil & gas sector in particular ever since formation of the new government, Pradhan said India has now become a bright spot of hope and opportunity in the world. While, there has been the surge of investments from around the world, there has been a sharp rise in India’s ranking on ease of doing business. India has become pool of investment opportunity in downstream and upstream sectors.

Huge energy market in India provides unique opportunity to invest in Indian oil and gas sector, Dharmendra Pradhan

Calling upon the investors to participate in the Discovered Small Fields Bidding Round – 2016, petroleum minister Dharmendra Pradhan said that the huge energy market in India provides unique opportunity to invest in Indian oil and gas sector.

Speaking at the road show in London today, Pradhan said these 67 Small Fields were discovered long back but could not be monetised mainly due to restrictions in government policies.

Now, progressive policies have been ushered in and private and foreign investments are being proactively facilitated. Small fields provide an investment opportunity in already discovered fields with no signature bonus, no requirement of prior technical experience and no mandatory work programme.

The new policy is based on revenue sharing contract model with the aim of  amplifying the operating regime and making it more transparent.

Giving a perspective of the paradigm shift in India, in general, and oil & gas sector in particular ever since formation of the new government, Pradhan said India has now become a bright spot of hope and opportunity in the world. While, there has been the surge of investments from around the world, there has been a sharp rise in India’s ranking on ease of doing business. India has become pool of investment opportunity in downstream and upstream sectors.

Highlighting major reforms in the oil and gas sector, Sh. Pradhan said, the Government is following principles of Enhancing production; Attracting investment and technology; Generating employment; Transparency; and Minimising administrative discretion.Oil and gas sector has also been identified as the major national initiative under ‘Make in India’ policy reform. Hydrocarbon Exploration and Licensing Policy has been launched to make future exploration bidding rounds more attractive for investors.

Dharmendra Pradhan said that Ministry of Petroleum & Natural Gas is looking at London and UK for bringing in not only investment but also innovation and new technology to improve oil and gas production from these fields. He assured the investors of all possible support.

Since the launch of Bid Round on 25th May, 2016 in New Delhi, multiple interactive meets across India and various international locations – Houston, Calgary, Dubai and Singapore have been conducted for the Bid Round 2016.​

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In the London Road Show, various presentations were also made before the distinguished audience by Directorate General of Hydrocarbons, ONGC and knowledge partners. The Minister also inaugurated London Data Room.

One Response to "Huge energy market in India provides unique opportunity to invest in Indian oil and gas sector, Dharmendra Pradhan"

  1. KANCHAN KUMAR   September 13, 2016 at 9:43 am

    Acquiring a discovered oil field can be a stepping stone for entry into large oil & gas blocks next year when India announces next bid round under new Hydrocarbon Exploration Licensing Policy (HELP). With falling oil price, the oil field services cost has also gone down together with oil field sale price. One can acquire a discovered oil field and focus on development and further exploration at a low cost. Any successful discovery translates into actual commercial production only after five to seven years; by which time the oil prices, with all probability, would recover bringing high return on today’s low investment.
    India has offered 67 Discovered Small Fields for bidding. As oil & gas has already been found in these fields, these blocks do not carry exploration risk. One can straight way develop and bring into production with a low capital investment, ranging between $5 million and $10 million.
    Today is the right time to identify investment opportunities in oil sector and focus on to create long-term value.

    Reply

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