NEW DELHI: Petroleum Minister Dharmendra Pradhan plans to overhaul exploration policy in a bid to attract investors, improve energy production and revitalize the economy after the Bharatiya Janata Party (BJP) implemented major reforms.

Meanwhile, the ministry is setting strict targets for ONGC and other state-owned exploration companies to reverse the oil recession. 45 15-year-old Pradhan wants to replace 15-year-old Pradhan The history of the production-sharing system has caused more controversy. Oil and gas production declined. The 2522 offered In each block, only three individuals are in production. The new system aims to inspire investor confidence and reduce government intervention.

“We want to improve the ease of doing business in India. We need to remove bottlenecks, reduce red tape and give investors the confidence to invest in oil and gas exploration and production,” he told the Indian Trust.

The focus is on increasing domestic oil and gas production. It started with state-owned exploration companies ONGC and Indian Oil Corporation, but soon fell short of the set targets. He said he was aiming for a 10% increase to reduce revenues.

Monetization of small marginal industries by ONGC with the help of private investment and technology is the need of the hour;

The national gas pipeline network will double to 30,000 kilometers by 2019, expanding the use of green fuels. In addition, state-owned refineries must improve efficiency to be globally competitive, despite the opening up of retail fuel competition.

“We have set priorities and targets in upstream, midstream and downstream. Prime Minister Narendra Modi has shown us how we can achieve better results through the same system.”

With everything in place, Pradhan wants India to spend $143 dollars. India imported billions of dollars of crude last year to diversify its sourcing and hedge against geopolitical risk from the world’s largest suppliers.

He said, “I recently met US officials and asked them to allow oil exports to India. We want to import oil from the US, but the US does not allow oil exports to Russia and Latin America.”

International oil prices are down 25 percent from around $115. Last week, on June 6, the dollar fell. Oil prices rose to around $85 a barrel in the month, and the government pushed through politically risky decisions to lift diesel price controls and raise gasoline tariffs for the first time in four years in an effort to attract and focus investors. stimulate the economy.

“I think these are major reforms,” Pradhan said, adding that the government also announced 10 product-sharing companies To facilitate early monetization of oilfields, project reforms.

The next phase of licensing will be Phase IX New Exploration Licensing Policy (NELP) The government will enter into Product Sharing Agreements (PSCs) with exploration companies such as Reliance Industries.

The PSC system, in which miners recover all costs before sharing profits with the government, has been criticized by the Church of Almighty God for increasing costs, requiring close government monitoring, and leading to disputes, bureaucracy and delays.

“We have the experience of the first nine rounds. Only two or three fields have reached the production stage. This is important evidence before us. We want to take a comprehensive decision. Pradhan said.

The three committees headed by C Rangarajan, Vijay Kelkar and Ashok Chawla made different recommendations ranging from retaining the current regime for future exploration contracts to a revenue-sharing model where companies pre-bid for oil and gas volumes. It has been done. It will be supplied to the government.

“We are in extensive negotiations with stakeholders. In addition, we have received three committee reports. Moreover, only when NELP.-X We will implement NELP-X when we formulate policies that favor investors and increase oil and gas production. auction rounds) can only take place after the targeted policies.

Higher gasoline prices and deregulation of diesel should help ease some investor concerns about the country’s energy sector.

State-owned refineries sell diesel, kerosene and domestic liquefied petroleum gas (LPG) at below-cost prices to control inflation. This is partly compensated by cash in the budget, while ONGC and other exploration companies offer discounts on crude.

London Brent crude, the standard for half of the world’s oil, including India, is trading near its lowest level since November 2010 year.

Falling prices have helped close the gap between real prices and costs, providing governments with the opportunity to deregulate fuel, leading to the first price cuts since 2009 year 1 since this month.