Newcomers To Unlock $7 Billion Oil And Gas Fields To Support PM's Strategy

By : 16-Feb-2017
PM Modi Approves Awarding Rights to New Oil Firms

MUMBAI: Indian Government has approved awarding rights to all the 31 small time oil and gas companies who had been in the potential field for the past 6 years.

The center has entrusted and designated the new entries with the responsibility to boost up the local production.

Sun Petrochemicals Pvt is a new entrant that was founded jointly by the directors of the Sun Pharmaceuticals Industries Ltd and Megha Engineering & Infrastructure Ltd.  Sun Petrochemicals Pvt becomes one of the few among 15 others who were given the authority to bring out the cutting-edge developments in the field.

PM Narendra Modi had aimed to cut down the oil imports in the country by 10 percent till 2022.  This way, the awarded blocks will improve India's oil output by 15,000 barrels per day.

The head of DGH, Atanu Chakraborty had said about the oil fields that are advantageous to the country in the investments perspectives and in creating new employment opportunities.  As per the DGH factsheet, the estimated revenue gathered from these blocks is recorded to be 464 billion rupees ($7 billion).

All the oil fields under the auction process were discovered by the Oil and Natural Gas Corp ONGC and Oil India Ltd Company that conserves about 625 million barrels for the benefit of the business.

However,  the crude oil giant Reliance Industries had distanced itself from the auctions.

The International Energy Agency has made speculations about India that would become the fastest growing oil consumer in the world by 2040.

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