Oil exploration: Legacy policies for upstream need to be revisited


Oil exploration: Legacy policies for upstream need to be revisited

It is conventional wisdom that if existing customers are happy, they repeat their custom, increase their business and provide a beacon to allure new customers. When the government seeks new bidders for residual unexplored acreage in India, the most vigorous participants are likely to be the existing PI (participating interest) holders who are enthusiastic and the new companies reassured and emboldened by them.

The government has introduced welcome changes in the policies for new investments in exploration and production of domestic oil and gas. These make the contract regime more compatible for the challenging factors below the ground. The current operators, however, work primarily on NELP, pre-NELP and nominated acreage.

Sadly, the legacy issues impacting these regimes still exist. Most producers are mired in these legacy issues. This impacts their future investment plans. Read More

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