New Delhi: The Cabinet Committee on Economic Affairs (CCEA), presidced by Prime Minister Narendra Modi, on Wednesday approved deregulation of sale of domestically-produced crude oil. As per the decision, the central government has dtermiend to cease allocation of crude oil and condensate effectively from October 1, to make sure marketing freedom for all Exploration and Production operators.
The condition in the production sharing contracts to sell crude oil to government or its nominee, or government entities shall accordingly be waived off. "All exploration & production companies will now be free to sell crude oil from their fields in the domestic market. Government revenues such as royalty, cess will carry on to be calculated on a uniform basis across all contracts.
Exports will not be permissible, as earlier. This move, which builds on a number of targeted transformative measures implemented since 2014, would significantly boost economic activity and spur investment in the upstream oil and gas industry "Anurag Thakur, the union minister, said. Rules relating to oil and gas production, infrastructure, and marketing have been made more transparent with an focus on ease of doing business and providing operators and industry with greater operational flexibility.