Global Oil and Gas Marketing companies have shown respect to the Indian government about the possible gas price. Global oil exploration companies do not want their dollars flow down the drain! They have asked the Indian government to stay away from gas prices.
Chevron, Niko, British Gas and Hardy Oil have expressed concerns about the government’s move to regulate gas prices.
The oil companies have written that the exploration is a very risky and very capital intensive. Therefore, they say, a market determined the price for gas would ensure that the fiscal terms are internationally competitive. This, they say will encourage companies to invest in India.
British Gas Company, which has invested one billion dollars in India so far, has told the Indian government that they intend to invest another billion over the next four years. But it says, if changes are made in parts of the production contract, which in practice KG Basin Gas Pricing, and critical provisions, such as market prices for gas amended, the confidence of the international companies would be eroded.
The same view is that by Hardy Oil and Chevron. Chevron, which has so far stayed away from bidding for oil assets in India, has told the Indian government that, to prevent the entry of the global oil company, the market must be allowed to drive gas prices.
Niko Resources, the dependence of the partners in the KG Basin says: “A healthy pricing should call for natural gas prices are based on the fair market value of gas. We are concerned with the recent developments, where there is persistent pressure and coercion shall be exercised on the contractors from various sectors to reconsider this market determines the price. We believe that such influence are not consistent with the rights granted to the contractors for the marketing of gas at arm’s length prices “under the PSC.”
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