• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 7 mins Shale Oil will it self destruct?
  • 11 hours NYT: Mass Immigration Roundups in U.S. to Start Sunday
  • 7 hours White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment
  • 2 mins South Korea imports No Oil From Iran in June - First-Half Imports Fall 37%
  • 24 hours U.S. Administration Moves To End Asylum Protections For Central Americans
  • 22 hours U.S.- Taiwan: China Says Will Freeze Out U.S. Companies That Sell Arms To Taiwan
  • 9 hours Germany exits coal: A model for Asia?
  • 3 hours Carrot And Stick: North Korea Suggests It Might Lift Weapons Test moratorium
  • 3 hours Migration From Eastern Europe Raises German Population To Record High
  • 4 hours Starlink Internet Courtesy of Tesla
  • 4 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 2 days Oil Price Could Fall To $30 If Global Deal Not Extended
  • 2 days Rising air pollution and green house effect
The Jewel In The Crown Of The European Gas Game

The Jewel In The Crown Of The European Gas Game

TANAP, Eurasia’s newest pipeline is…

India Considers Policy Change To Let Oil Companies Sell Products To Affiliates

oil barrels

The Indian oil ministry is mulling over an amendment to its regulations of how oil and gas companies conduct their business to allow them to sell oil and gas to affiliates, Indian daily Economic Times reports, citing sources close to the ministry.

The amendment was prompted by the Directorate General of Hydrocarbons—the country’s energy market watchdog—which wrote to the ministry noting that the definition of “arm’s length”, the principle treating oil and gas contracts in India and prescribing that the buyer and the seller must be entities independent from each other, contradicts a stipulation in the new Indian revenue sharing contract.

The contract, recently approved, allows for the sale of oil and gas between a parent company and an affiliate. This is the part that prompted the DGH to alert the ministry to the contradiction. Now, the Economic Times reports, the ministry is seeking a way to redefine the universal arm’s length principle in such a way as to accommodate the contradictory part of the new revenue sharing contract.

The issue is topical as India seeks to boost its local oil and gas production to reduce its reliance on imports. Over the past few months, rising oil prices and a weakening Indian currency have already created a perfect storm for India, where oil demand growth has been surging, but the higher oil prices are increasing the country’s spending on crude oil imports, which account for 80 percent of consumption.

Two years ago, the government approved a new Hydrocarbon Exploration and Licensing Policy aimed at doubling the country’s oil and gas production over the next five years. Last month, the DGH awarded 55 undeveloped oil and gas exploration blocks to local companies. These represented the first round of the Open Acreage Licensing Policy that sought to open undeveloped deposits to explorers.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play