The petroleum ministry is likely to ask Essar Oil to pay more cess and royalty on its oil and gas production from Ratna & R-series blocks in line with the revised rates.
The petroleum ministry may ask Essar Oil to pay more cess and royalty for allowing it to produce oil and gas from Ratna & R-series, fearing a revenue loss of about $1 billion.
Energy firms may have to wait a little longer to avail a seven-year tax holiday on natural gas production. The Income-Tax department is unwilling to allow tax benefit on production of natural gas as the matter is sub judice.
Cairn India (CIL), a subsidiary of UK-based Cairn Energy, engaged in the development of oilfields in Rajasthan, has written a letter to the government seeking an additional 238 sq km of land adjacent to the area where it recently made three new discoveries, Kaameshwari West 2, 3 and 6.
The fields are certified to have 500 million barrels of in-place oil reserves. The consortium may start production in 8-12 months from the date of signing of PSC.
The government has been toying with the idea of increasing Customs and excise duties on petrol and diesel.
ONGC Videsh (OVL), the foreign investment arm of Oil & Natural Gas Corp (ONGC), has found two significant hydrocarbon (oil and gas) leads in a Cuban deepwater exploration block where it has a 30% stake.
Three oil navratnas - Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) - could turn sick and slip into red if the government does not step in immediately to restore the financial health of the companies, a senior petroleum ministry official said.
Further cuts in petrol and diesel prices may happen only in February with the government planning to link those with an imminent deregulation of retail fuel prices, said people familiar with the matter.
Oil sector regulator Petroleum & Natural Gas Regulatory Board (PNGRB) has said it is empowered to look into the unfair pricing of petrol and diesel.
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