16:53 GMT +323 October 2019
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    Modi Asks Indian Oil Firms to Increase Overseas Acquisitions

    © AFP 2019 / Munir uz ZAMAN
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    India is looking at multi-vector energy corridors that require Indian oil companies to step up partnerships with foreign counterparts, Indian PM Narendra Modi said while upholding the OVL-Rosneft deal as a model.

    New Delhi (Sputnik) Indian PM Narendra Modi has hailed the recent foray of India’s state owned ONGC Videsh Limited (OVL) in Russian oil fields as a significant leap in the direction of attaining energy security.

    Speaking at an annual Petroleum conference held in India, Modi hoped India’s oil companies would continue to expand their overseas assets. “I hope that our oil and gas sector companies will take the opportunity to tie up with their foreign counterparts to explore for more equity oil… Indian energy companies must become multinational and work towards India-Middle East, India-Central Asia, and India-South Asia energy corridors.”

    Modi also drew attention to the opportunities in India for global hydrocarbon companies due to a investment-friendly policy framework. A new hydrocarbon exploration and production policy will provide for a comprehensive license for the exploration and production of all forms of hydrocarbons, including shale oil and gas and coal bed methane, he informed delegates from India and abroad.

    The policy also allows bidders to choose the acreage they wish to explore and has mooted a revenue sharing model instead of profit sharing to reduce any scope for disputes and give marketing and pricing freedom for the crude oil and natural gas produced.

    “Our constant efforts have improved India’s ranking in Ease of Doing Business. Let me assure you that our commitment is strong and our motto is to replace red tape with red carpet,” he said while highlighting the projection that India is poised to account for one fourth of the incremental global energy demand between 2013 and 2040. It is expected to consume more oil in 2040 than the whole of Europe.

    Hydrocarbons continue to be an essential part of India’s energy basket as the demand for fossil fuels is expected to go up in line with a projected five-fold jump in the economy to $ 10 trillion by 2040. Oil security is also vital to India keeping in view strategic and defense considerations.

    India’s Hydrocarbon Vision 2025 aims to ensure adequate availability by a mix of domestic gas imports through pipelines and import of LNG. It also aims to tap unconventional sources of natural gas like coal bed methane, natural gas hydrates and underground coal gassification.

    The top priority for the Modi government is to open up the hydrocarbon market and ensure a level playing field for state owned enterprises, private companies and other international players.

    Related:

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    India Approves $3.2 Bln Deal to Acquire Two Russian Oil Fields
    India Signs Deal for Additional 11% Stake in Russia’s Largest Oil Field
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    oil companies, Narendra Modi, India
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