After NSG rebuff, India falls back on fossil fuels for energy security

July 4, 2016

New Delhi: After the failed attempt to join an exclusive group of 48 countries that control the trade in nuclear material and equipment, India is now falling back on its quest for more fossil fuel reserves.

Oil minister Dharmendra Pradhan will visit the US later this month to seek investments and technology from exploration companies for 67 smaller fields with oil and gas discoveries, which will be auctioned for commercial production under a liberal and simple revenue sharing agreement, said an oil ministry official who asked not to be named.

Companies have time from 15 July to 31 October to bid for these fields.

Another official familiar with the plan, also speaking on condition of anonymity, said that once the auction for the smaller fields are over, the government will get on with the auction of larger fields under the new Hydrocarbon Exploration Licensing Policy announced on 10 March. The scheme offers pricing and marketing freedom for oil and gas producers under a simple revenue share contractual regime.

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