New pricing formula for difficult gas finds
Aiming to attract more investments in the oil and gas sector, the government announced a new pricing formula for underdeveloped gas discoveries in difficult areas. The move is expected to result in 85 per cent jump in rates and help monetise Rs.1.80 lakh crore of inert finds. While giving nod to pricing freedom subject to a cap for gas produced from High Pressure High Temperature, deepwater and ultra deepsea areas, the Cabinet also approved replacing the controversial Production Sharing Contract (PSC) with simpler revenue-¼sharing regime for all future field auctions.
Contact: Ministry of Petroleum and Natural Gas