New Delhi, March 10 (IANS): Hydrocarbons discovered and produced from difficult areas will now get a new pricing norm to encourage production and unlock Rs.180,000 crore worth of reserves that are stuck due to want of incentives, Petroleum Minister Dharmendra Pradhan said on Thursday.
Briefing reporters on the decisions taken at a meeting of the cabinet, presided over by Prime Minister Narendra Modi, the oil minister said also approved on Thursday was a new oil and gas exploration policy with a revenue-sharing model, as opposed to cost-and-output-based norm.
The difficult areas are defined as those from deep-water, ultra deep-water and high pressure-high temperature areas.