Measures taken by the government recently will remove some impediments holding back investment in exploration and production. Pricing and marketing of produce also need to be unshackled
Despite offering an attractive policy environment under the New Exploration and Licensing Policy (NELP) and the Hydrocarbon Exploration and Licensing Policy (HELP), also known as the Open Acreage Licensing Policy (OALP), exploration and production (E&P) of oil and gas hasn’t picked up on the required scale. A major bottleneck has been regulatory hurdles which the government is now trying to address.
Three important measures have been implemented by the Union government in recent times to remove regulatory and procedural hurdles faced by E&P companies. One, 0.67 million sq km sedimentary basin lying offshore, which was declared ‘no go’ due to security reasons has been released. This will give a boost to E&P activity. Two, contractors are to be granted E&P rights over the entire economic life of the allotted fields instead of the current system of allowing extensions. This will enthuse global firms to undertake long-term investment commitments. Three, pre-approved clearance of blocks and self-certification of documents will be permitted, which will substantially cut the time lost in taking approvals.
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https://www.moneycontrol.com/news/opinion/more-reforms-are-needed-to-attract-serious-investment-in-oil-gas-11048271.html