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$25.2 bn investment committed in petroleum and gas: Dharmendra Pradhan

The Centre is looking to attract investments, which had apparently slowed down in the past few years due to several policy-related issues

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Out of the cumulative investments of $40 billion expected in India's petroleum and gas industry in the next four to five years, over $25.2 billion has already been committed under production sharing contract, said petroleum and natural gas minister Dharmendra Pradhan during an industry event on Thursday.

Pradhan said that his ministry is in the process of easing the bottlenecks and will soon be announcing more policies to attract further investments into the sector from domestic and international players.

The Centre is looking to attract investments, which had apparently slowed down in the past few years due to several policy-related issues. India's oil demand is growing at around 6% annually and it meets about 80% of its requirements from imports. The government aims to reduce the imports by at least 10% by the year 2022.

As per the data available with the ministry, out of the committed investment, around $13.6 billion into field development planning (FDP) is approved, $11.6 billion is into declaration of commerciality, $100 million is expected from development of 30 contract areas awarded under round I of DSF (discovered small fields). Likewise, investment of about $300 million is for development of 61 contract areas under round II of DSF. Under open acreage licence (OAL) policy, $5-6 billion is expected in exploration activities and another $20-30 billion is for development activities.

Earlier this month, Prime Minister Narendra Modi met with top honchos of several large international and national companies including BP, Saudi Aramco, Rosneft, Exxon Mobil, Vedanta and Reliance Industries to discuss ways for attracting investments in exploration and production, transportation, distribution of oil and gas in India. Modi had called a similar meeting last year in January.

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