India consolidation plans gain traction

India’s plans to integrate some of its state-run oil and gas companies should bear fruit before the end of the year, Minister of State for Petroleum and Natural Gas Dharmendra Pradhan said on Monday.

Speaking at the CERAWeek energy event in Houston, said the government was working to “create integrated companies from production to distribution.”

“The [integration] process should be over by this calendar year, maximum in the 2017-2018 fiscal year,” Pradhan was quoted as saying.

Pradhan also unveiled India’s Hydrocarbons Exploration and Licensing Policy (HELP).

The new framework stands out in that it will allow interested parties to delineate blocks based on the available data as opposed to the areas being defined by the government. Additionally, companies can express interest at any time – they will not have to sit tight for a licensing round to be scheduled.

“In the new model, government will not micromanage, micro monitor with producers. Government will only share revenue. It will be an open and regular affair,” Pradhan said in comments.