“A multi-pronged approach is required for achieving production targets such as enhancing production from already producing fields, speedy execution of field development plans in existing and new fields, … production-linked incentives in existing acreages,” the oil ministry said in a recently released report titled ‘Indian Petroleum and Natural Gas Statistics’.
The report didn’t have more details on the idea of production-linked incentives in oilfields. Current government policies provide incentives to companies deploying enhanced recovery techniques in maturing fields. A gas pricing policy introduced last year permits a 20% premium over the government-set price for the additional volume ONGC and Oil India may produce from their legacy fields.
“It is necessary to accelerate exploration, especially in frontier offshore areas, and attract foreign capital through exploration-led, data-driven strategies and effective outreach,” the ministry said in the latest report.
The report stressed the need for attracting technologies and strategic partnerships to boost production.
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