Guwahati: The deregulation of the selling of domestically produced crude oil was approved by the cabinet committee on Wednesday.
The decision was taken in an effort to encourage investment in the upstream oil and gas sector and to further boost economic activity.
“The government has decided to cease allocation of crude oil and condensate w.e.f. 01.10.2022. This will ensure marketing freedom for all Exploration and Production (E&P) operators. The condition in the Production Sharing Contracts (PSCs) to sell crude oil to the Government or its Nominee or Government Companies shall accordingly be waived off,” read an official statement.
Now, all E&P firms are permitted to sell crude oil produced in their fields on the domestic market. Royalties, cess, and other government fees will continue to be determined consistently across all Contracts. Exports will be prohibited, as before.
“The policies relating to production, infrastructure and marketing of oil and gas have been made more transparent with a focus on ease of doing business and facilitating more operational flexibility to operators/industry,” added the statement.