India eases rules for old oil, gas blocks; to unlock $21 billion reserves | Reuters

NEW DELHI India approved a policy on Wednesday allowing extra time to contractors of old blocks to unlock oil and gas reserves of more than 426 million barrels, worth over $21 billion, as it seeks to cut its dependence on imports.The policy approved by the Cabinet will help companies including Cairn India and Oil and Natural Gas Corp that are exploring blocks awarded before 1999.Prime Minister Narendra Modi's Bharatiya Janata Party has been taking steps to boost local oil and gas output, which had been almost stagnant for decades.

Reuters March 22, 2017 23:30:08 IST
India eases rules for old oil, gas blocks; to unlock $21 billion reserves
| Reuters

India eases rules for old oil gas blocks to unlock 21 billion reserves
 Reuters

NEW DELHI India approved a policy on Wednesday allowing extra time to contractors of old blocks to unlock oil and gas reserves of more than 426 million barrels, worth over $21 billion, as it seeks to cut its dependence on imports.The policy approved by the Cabinet will help companies including Cairn India and Oil and Natural Gas Corp that are exploring blocks awarded before 1999.Prime Minister Narendra Modi's Bharatiya Janata Party has been taking steps to boost local oil and gas output, which had been almost stagnant for decades. India imports about 80 percent of its oil needs.

Modi set a target in 2015 to cut dependence on oil imports from about by four fifths to 67 percent by 2020. Brent crude was trading at $50.2 a barrel at 1627 GMT. [O/R]During the extension period, contractors are expected to make an additional investment of more than $5.4 billion, a government statement said.

"This policy will enable the contractors to extract not only the remaining reserves but also plan to extract additional reserves by implementing new technologies," a government statement said.

During April-February, the production from these old oil and gas blocks was around 55 million barrels of oil and 965 million cubic metres of natural gas, the statement said. The Cairn-operated Barmer block in the desert state of Rajasthan accounts for about half India's onshore production of crude oil.During the extension period, the government's share in the profit earned from these blocks will rise by 10 percent, the statement added. (Reporting by Neha Dasgupta and Nidhi Verma; Editing by Ruth Pitchford)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.