PM Modi urges global CEOs to invest in oil, gas sector

About 20 executives from companies like ExxonMobil, BP, QatarEnergy, and TotalEnergies participated in the meeting

February 6, 2024

PM Modi highlighted the recently launched exploration licensing round, aiming to attract global investment in oil and gas exploration and production in India

Reforms in the oil and gas sector were discussed, including a shift from revenue-based to exploration-focused bidding for oil and gas areas

As the world's third-largest energy consumer, India currently imports 85% of its energy needs, and the government aims to boost domestic production to reduce imports

Vedanta Chairman Anil Agarwal expressed that India is an attractive global investment destination, citing recent reforms and favourable conditions for exploration and production investments

Prime Minister Narendra Modi engaged in discussions with leading executives from the oil and gas industry, highlighting the opportunities within the world’s fastest-growing economy and the governmental reforms, particularly in exploration and production. Approximately 20 top executives from companies like ExxonMobil, BP, QatarEnergy, and TotalEnergies participated in the meeting, where energy scenarios and investment prospects were explored. Modi emphasised the recently launched exploration licensing round, aimed at attracting global giants to invest in oil and gas exploration and production in the country.

The discussion also covered reforms in the oil and gas sector, including a shift from revenue-based bidding to exploration-focused bidding for oil and gas areas. India ranked as the world’s third-largest energy consumer, currently imports 85% of its energy needs, prompting the government’s goal to boost domestic production and reduce imports. Among the attendees were Indian CEOs, including Anil Agarwal, Vedanta Chairman, and Reliance Industries Ltd executives.

Sharing insights from the meeting, Anil Agarwal expressed his belief that India is an excellent global investment destination due to recent reforms, making it attractive for global majors to invest in exploration and production. Vedanta plans to increase its investment by USD 4 billion to double oil and oil-equivalent gas production to 300,000 barrels per day within three years.

Agarwal highlighted India’s unique position, possessing abundant resources and high demand, making producing and consuming domestically possible. He highlighted the favourable policy climate, regulatory environment, and government support, positioning India as an ideal investment location. Modi’s engagement with global oil and gas experts and CEOs, using platforms like the IEW and CERAWeek India, has resulted in constructive feedback, leading to policy adjustments, particularly in exploration licensing and natural gas pricing rules. The government’s flexibility and receptiveness to industry feedback have contributed to refining policies for a more conducive investment environment.

Source: Economic Times

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