Skip to main content

PM appoints committee to look into the design of future Production Sharing Contracts in hydrocarbon exploration


In view of the considerable experience gained in awarding concessions for oil and gas exploration and production over the last 15 years under the New Exploration Licensing Policy (NELP), there is a need to look into how the policy design has impacted oil and gas exploration and production. At the request of the Minister of Petroleum and Natural Gas, the Prime Minister has approved the constitution of a Committee to review Production Sharing Contracts (PSCs) in Hydrocarbon exploration.

The composition of the Committee is: 

(i) Dr. C. Rangarajan, Chairman, PM`s Economic Advisory Council – Chairman

(ii) Shri B.K. Chaturvedi - Member, Planning Commission

(iii) Justice Shri Jagannadha Rao, Former Judge of the Supreme Court

(iv) Prof. Ramprasad Sengupta

(v) Shri J.M. Mauskar, former IAS Officer

(vi) Shri Joeman Thomas, MD, ONGC Videsh Ltd.

The Committee is to look into all modifications necessary for future Production Sharing Contracts so as to enhance production of oil and gas and the Government`s share of this while minimizing procedures for monitoring the expenditure of producers.

The Terms of Reference of the Committee are:

(i) Review of the existing PSCs, including in respect of the current profit-sharing mechanism with the Pre-Tax Investment Multiple (PTIM) as the base parameter;

(ii) Exploring various contract models with a view to minimize the monitoring of expenditure of the contractor without compromising, firstly, on the hydrocarbons output across time and, secondly, on the Government`s take;

(iii) A suitable mechanism for managing the contract implementation of PSCs which is being handled at present by the representation of Regulator/Government nominee appointed to the Managing Committee;

(iv) Suitable governmental mechanisms to monitor and to audit GOI share of profit petroleum;

(v) Structure and elements of the Guidelines for determining the basis or formula for the price of domestically produced gas, and for monitoring actual price fixation;

(vi) Any other issues relating to PSCs.

Source : Press Information Bureau

Comments

Popular posts from this blog

Union HRD Minister to Release NBT-NCAER Study on Reading Habits of the Literate Youth of North-East India

Youth of North-East India: Demographics and Readership (Highlights) Union Human Resource Development Minister Dr M  M   Pallam   Raju ,  will release a report  Youth of North-East India: Demographics and Readership  in New Delhi tomorrow,  20 th  November, 2012. Ministers of State for HRD,  Sh   Jitin   Prasada  and Dr  Shashi   Tharoor  would also be present on the occasion. This focused Report attempts to give an analytical and detailed account of the reading habits of the literate youth in the north-eastern states and their exposure to different forms of media, and how diverse socio-economic and motivational factors impact their reading habit. The reading of ‘leisure or non-text books’ among the literate youth is the special focus of the study. The Report is a follow-up study of the  National Youth Readership Survey  (2009-10) assigned to National Council of Applied Economic Research (NCAER) by the NBT under the National Action Plan for the Readership Development amon

Major Initiatives for Farmers

Pic Courtesy : indiainfoline.com The Government gives very high priority to agriculture and specially to the prosperity of farmers. It is implementing a number of large schemes and providing funds to State governments for taking new initiatives for increasing farmers’ incomes. Some of the major actions taken in the recent past are given below:  • Government has raised MSP in recent years by huge margin. MSP for wheat and rice has been more than doubled in last 8 years. MSP for some pulse crops has gone up three times.  • Government has doubled the sugarcane support price in four years. It stands at Rs. 170 per quintal now.  • Record foodgrain production of 257 million tonnes last year, supported by massive increase in MSP to farmers. It is more than thrice of foodgrain production 45 years back.  • Government subsidises farm loans considerably. Crop loans upto Rs. 3 lakh are available at 4% interest. Other farm loans too are available at a subsidised rate of 7%. • Farm credit has