India's new oil deal may attract oil and gas investment

Recently, a number of analysts familiar with the Indian market said that India's latest oil and gas sector reform policy allows upstream producers to sell their crude oil without restrictions in the Indian domestic market, which may attract more overseas and private companies to invest in the industry.

Earlier on June 29, India's Ministry of Petroleum said that from October 1, India will allow oil and gas upstream operators to sell locally produced crude oil without restrictions in the domestic market, but export restrictions on locally produced crude oil will continue to exist.

Panka Karra, CEO of Essar Oil Exploration and Production India, said: “This move will ensure that all Indian oil exploration and production companies sell crude oil at the highest bids in the domestic market through electronic auctions

Since 2014, India's policies on oil production, infrastructure and marketing have been gradually loosened

With India's cabinet approved a proposal to allow upstream oil companies to sell crude oil to anyone in the domestic market, private exploration and production companies are expected to be Benefit as they are now no longer subject to the sale of crude oil by state-owned refiners

Anil Agarwal, chairman of India Vedanta Limited, said: "This decision will attract many domestic and international companies to conduct oil and gas exploration and production in India, which will help increase the government's revenue

State-owned Oil and Gas Corporation of India (ONGC), which accounts for the majority of India's crude oil production, said it had recently finalized its future exploration strategy

Vibhuti Garg, chief Indian energy economist at the Institute of Energy Economics and Financial Analysis, said: “The Indian government’s decision to deregulate the sale of domestically produced crude oil will stimulate investment and production