India is all set to offer at least 56 oil and gas exploration blocks in the upcoming licensing round. This action is based on the new gas pricing and revenue sharing rules.
Reuters quoted Vivek Rae, Oil secretary “Gas pricing is the single most important decision that will encourage and invite more companies to invest in India.” Rae also informed that the bid would be invited from February. In the last round firms from overseas depicted hesitant interest because of the political and legal constraints, reports Reuters.
Reuters also reported that a draft note by the ministry has already been circulated in the cabinet inviting comments from the palnnning commission and linance and law ministries amongst others.
In the next round it is anticipated that the contractors would be sharing their revenue with the government, unlike the present scenario where companies share their profits only after recovering their costs.
However, there still are doubts revolving in the minds of various analysts regarding the auctions. The news agency also quotes an oil and gas expert regarding the same.