BUOYANT EARNINGS GROWTH: LARGE PRIVATE INVESTMENT IN OIL E&P IS IMPERATIVE IN INDIA
Article Abstract:
India requires an estimated Rs15,000 crore per annum between 1998 and 2008 AD to successfully harness its oil production potential. The New Exploration Licensing Policy (NELP) is aimed at attracting international oil majors. As per the policy, all new oil discoveries will be given full international price parity and oil exploration and production (E&P) companies will get international prices for new oil fields. International competitive bidding will be mandatory for awarding all new oil blocks and a system of open acreage will be followed for retendering. The royalty charges have been cut from the 20 percent level to 12.5 percent for onshore fields, 10 percent for offshore fields and five percent for offshore fields below a depth of 200 meters. Cess charges have been abolished and sales tax has been cut significantly. Oil exploration has been given infrastructure status and has been exempted from payment of income tax. The import of capital goods required for oil E&P activities can be made at concessional rate of import duty. Oil E&P companies have been given total freedom in marketing their crude oil to any Indian refinery. (tsm)
Comment:
India: Requires an estimated Rs15,000 crore per annum between 1998 & 2008 to successfully harness its oil production potential
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1998
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INDIAN OIL EXPLORATION & PRODUCTION INDUSTRY - BUOYANT EARNINGS GROWTH
Article Abstract:
India's oil reserves are estimated to be around 22 billion tonnes of which only 30 percent has been discovered. Of these discovered reserves only 10 percent has been commercially exploited thereby reflecting the huge potential India holds for oil exploration and production. Currently, Bombay High is India's largest oil field and it accounts for 60 percent of the total domestic production. The Assam and Gujarat oil fields account for around 20 percent each. Domestic crude oil production rose by 3.3 percent during 1997-98 to reach around 30 million tonnes. Since the domestic refining capacity stands at around 62 million tonnes, 32 million tonnes of crude oil had to be imported, valued at around $9.7 billion. Several new private refineries are going on stream in the near future and the refining capacity in India is projected to exceed 130 million tonnes by 2001-2002 AD. The Oil and Natural Gas Corporation (ONGC) is the country's premier oil exploration and production company. ONGC (tsm)
Comment:
India: Oil reserves are estimated to be around 22 bil tonnes of which only 30% has been discovered
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1998
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BUOYANT EARNINGS GROWTH: FUTURE OUTLOOK & BUSINESS PROSPECTS FOR OIL EXPLORATION & PRODUCTION COMPANIES
Article Abstract:
Indian oil exploration & production (E&P) companies are planning to concentrate on existing oil acreage for potentially large new oil discoveries through sophisticated screening methods. Oil E&P companies will use modern drilling and recovery techniques and are also venturing into virgin territories. These companies are presently engaged in offshore drilling up to a depth of 85 meters but are planning to enter into technical collaboration will global oil majors for deep sea oil drilling and exploration. India's coal reserves have methane gas and this coal bed methane reserve potential is around 750,000 million square cubic meters. Domestic oil companies are planning to source technology to commercially export these reserves. ONGC is planning to invest Rs25,000 crore during 1998 and 2003 AD for discovering new oil fields and boosting production from existing fields. (tsm)
Comment:
India: Oil exploration & prodn cos plan to focus on existing oil acreage for potentially large new oil discoveries
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1998
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