Petroleum and Natural Gas

Issues Related to Petroleum Sector

Absence of global gas market for benchmarking global gas prices
Petroleum and natural gas products to be included under GST
Construction of network of gas pipelines to be encouraged
Viability Gap Funding (VGF) should be provided for creation and development
of gas pipeline network
Impetus required for not only cross country pipelines but also city gas
distribution
Rationalization of LPG subsidy
Exemptions on import of Liquefied Natural Gas
 Major Initiatives
Policy for Marginal Fields of ONGC and OIL
New hydrocarbon discoveries to be brought into production

Policy on Testing Requirements in New Exploration Licensing Policy (NELP) Production

Sharing Contracts (PSC)
Policy on Testing Requirement in with/without Drill Stem Test in NELP blocks has been approved
Policy has paved the way forward for 10 discoveries in the east coast offshore areas by resolving long-
pending disputes associated with testing requirements

Uniform Licensing and Open Acreage Policy

Single E&P license for all forms of hydrocarbon
Open acreage licensing system
Easy to administer revenue-sharing model