A new fiscal regime for oil and gas output is broadly welcome with attendant institutional revamp

There seems much policy reform in the pipeline in the oil and gas sector. The report of the ‘Committee on the production sharing contracts mechanism in petroleum industry’ calls for policy overhaul to incentivise exploration and production (E&P) of hydrocarbons. The panel, headed by Dr C Rangarajan, has recommended a revamped policy regime for new contracts in the upstream oil and gas industry based on upfront revenue share for government, rather than cost recovery for licensee operators being the primary focus as at present.