Government of India caps natural gas prices from the difficult field at USD6.61/ per million British thermal units

India: Ministry of Petroleum & Natural Gas have fixed the ceiling price of natural gas at USD6.61 per million British thermal units. The natural gas is expected to be produced from difficult fields for the duration of April-September 2016. It is the first time when Indian government had set the price for natural gas which is not yet produced from deep-water, ultra-deep-water and high-temperature and high-pressure fields.

TechSci Research depicts that this fixed price of natural gas from difficult fields would benefit Indian oil & gas explorers and would result into the increase in the market of India Oilfield Services. Oilfield services help smoothen the drilling process by eliminating the waste produced during drilling, and enhance the oil recovery process by providing repair and maintenance of bore wells. Under a new revenue sharing model, the Government of India has decided to auction 69 idle oil & gas fields of state-owned ONGC and Oil India, to private companies. This move is anticipated to boost exploration and production of oil & gas in these fields, which is in turn expected to fuel growth in the market for oilfield services in India, during 2015 – 2020.

According to TechSci Research report, “India Oilfield Services Market Forecast & Opportunities, 2020”, the country’s oilfield services market is projected to surpass US$ 7.8 billion by 2020, on account of anticipated increase in oil and gas E&P activities. Growth in the market is anticipated on account of increasing oil & gas exploration and production activities in the country, aimed at reducing India’s dependence on oil imports.