The Ministry of Petroleum and Natural Gas (MoPNG) plans to offer stakes of up to 60 per cent in oil and gas fields owned by state energy companies that are already under production to private firms. The failure to draw investments from global oil majors in new fields has prompted the move. The MoPNG plans to approach the cabinet for allowing private firms to take a participating interest in a nomination block. The cabinet may accept the new policy by December 2017. The Directorate General of Hydrocarbons has also proposed that state-owned companies enact technical tie-ups with private firms, offering to give them an assured rate of return if the output increases beyond a certain level.
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