NEW DELHI
INDIA is planning to relax rules for oil and gas exploration permits in time for the next bidding round, in a move to attract global companies.
"For the next round (of exploration licensing) we want to put in place a more investor-friendly regime for investment and from the point of view of pricing," oil Minister S Jaipal Reddy said on Sunday.
Companies should have the consent of the Government for the formulas that they use from the sales prices for the oil and gas under the current rules.
India, the world's fourthbiggest oil importer, wants to tap domestic delivery to cut its ballooning import bill and growing budget deficit.
Local companies have so far dominated the auctions for Indian licenses and the Government wants more overseas bids.
Speaking at the Petrotech Conference, said Reddy a panel led by C Ranagarajan, Chairman of the Economic Advisory Council of Prime Minister, will submit a report in the coming weeks proposals for improvements to the current policy of exploration.
"It is our aim to tenth round (auction) in this calendar year," he said, adding that the Cabinet has to approve the recommendations of the panel.
Oil Secretary said of the following exploration round GC Chaturvedi, the Ministry of oil will get approvals from various ministries including environment and defense before the blocks of oil and gas are going under the hammer.
He said contractors on about a dozen blocks are pending defence approvals for the execution of exploration.
Mining large BHP Billiton said in its annual report that Indian offshore exploration is affected as a result of delays in obtaining permits from the Ministry of defence.
BHP Billiton, which operates 10 offshore blocks, and the local partner have claimed force majeure as a result of these delays.
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