FDI in petroleum sector permitted across the hydrocarbon value chain
The present FDI policy for petroleum & natural gas sector allows 100 per cent automatic route for exploration and production, refining by the private companies (for public sector companies 49 per cent on automatic route without any divestment or dilution of domestic equity in the existing PSUs), marketing of petroleum products, pipelines, storage and LNG regasification infrastructure and all related services, subject to existing sectoral policy and regulatory framework in the oil and gas sector.
Exploration and production of oil and gas are capital intensive and high risk activities requiring use of expensive stat-of-the-art technologies and best management practices, the minister said.
Accordingly, the central government is encouraging participation of the private sector, including foreign companies in exploration, production and transportation network for petroleum and natural gas, to supplement the domestic investment as well as the efforts of the national oil companies in meeting the rising demand of oil and gas and reducing import dependence.
Image: Ministry of Petroleum & Natural Gas, GoI/Twitter
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