New Delhi The leeway for oil producers to stagger or defer sharing of profit with the government could go. The upstream oil regulator has proposed that these companies earmark a defined fraction of their revenue for the government, right from the start of production.

Currently, producers can decide whether and how to recover their investments before starting to share profits with the state. The Comptroller and Auditor General has criticised this system as it allows a perverse incentive to front-load capital expenditure and delay government’s share of profits.

The government plans to relax rules for oil and gas exploration licences in time for the next bidding round, in a move to attract global companies.

After GAIL found new oil reserves in Ganganagar last month, now Focus Energy last week hit upon huge reserves of gas in three wells in SJL field at RJON/06 in the Shahgarh Bulj area in Jaisalmer at a depth of 3,170m.

Focus Energy is still digging four new wells where the chances of finding gas reserves are high. Focus Energy is using modern technology for exploring oil and gas. The firm has also applied to the state government for making new air strip to ferry the experts in charted planes. The Ministry of defence has also approved it.

New Delhi After the lacklustre response from foreign participants in the earlier NELP rounds, the government is looking to revamp its oil and gas exploration policy before the NELP-X round of auction.

The government is planning to initiate the 10th round of auction under the new exploration licensing policy (NELP) after making changes in the production sharing contracts to attract more domestic and foreign investors.

The government plans to relax rules for oil and gas exploration licences in time for the next bidding round, to attract global companies.

“Before the next round (of exploration licensing) we would like to put in place a more investor-friendly regime, both for investment and from the point of view of pricing,” oil minister S Jaipal Reddy said. Companies have to get government approval for the formulae they use to work out selling prices for the oil and gas. India, the world’s fourth-biggest oil importer, wants to tap domestic supply to cut its ballooning import bill and widening budget deficit. So far, local companies have dominated auctions for Indian licences and the government wants to attract more foreign bidders.

Total gas sales volume to exceed IGL's and MGL's after acquisition

Having announced a controlling stake acquisition in Gujarat Gas Company Ltd (GGCL), Gujarat government-owned Gujarat State Petroleum Corporation (GSPC) is set to become the largest city gas distribution company in terms of customers in India. The GSPC Group, through its subsidiary GSPC Distribution Networks Ltd, has signed a definitive agreement with the British Gas Group to acquire 65.12 per cent stake in GGCL. The deal, however, was not warmly received by the market. GGCL stock dived nine per cent on the Bombay Stock Exchange.

Co may freeze oil & gas investments till clarity on gas pricing.

Piped supply of oil and domestic gas will be increased in next few years. Similarly, 25 percent of the country’s energy will be met through natural gas.

Mumbai Cairn India’s plans for enhancing oil production from its Rajasthan block is likely to drive the domestic crude oil production by 3.1% in FY13, a Centre for Monitoring Indian Economy (CMIE) survey has said.

“The domestic crude oil production is likely to grow by 3.1% in 2012-13. (Even though) the oil output during the April-July period declined 0.6%, the growth is likely to recover in the coming months mainly on account of Cairn India,” CMIE said in its monthly report.

Mumbai Government-run Hindustan Petroleum Corporation (HPCL) is eyeing stakes in overseas oil blocks, primarily in Africa and Kazakhstan, as it looks to beef up its portfolio of producing and disco