International Energy Firms Claim Growth and Development Memo is ‘Lip Service’

Published Date : Feb 10, 2015

According to the international and domestic energy companies, the Prime Minster of India has invested 10 months and still nothing has changed in the oil and gas industry. They commented that all this is lip service as no regulatory authorities or partner companies have planned or worked together in the effort to increase the production or working conditions. 

In the face of these growing market challenges, the files are pending and the fields are still without any production, added the managing director of an oil and gas production company seeking for an expansion abroad.  

HOEC is one of the company partners and apparently a key block. HOEC’s PY-3 has not observed any production since 2011. However, restarting the production is their high priority and they have been working on this with all their partners.

According to the partners, there were some disputes with the Directorate General of Hydrocarbons as to only the licensee were to pay the royalty and cess. However, there are no longer any issues because contract terms cannot be changed arbitrarily, said an official at HOEC. 

Eni - an Italian petroleum exploration and production company plans to sell its stake (of 47.18 per cent) in the HOEC for some time. The Italians are disappointed as nothing is moving ahead in India and they are forced to exit the country, said the chief executive of an International Exploration and Production firm. 

Another international firm in partnership with Reliance Industries says it is no longer interested in being in the country. Similarly, Niko Resources which owns 10 percent in the D6 block is another example that is evaluating plans for its oil and gas assets and working their way out of the country. 

The international energy companies think too shallow of India’s progress in the energy field and say nobody is interested in business and progress.