DEREGULATION OF SALE OF DOMESTICALLY PRODUCED CRUDE OIL

About:

• This will ensure marketing freedom for all Exploration and Production (E&P) operators.
• The condition in the Production Sharing Contracts (PSCs) to sell crude oil to Government or its Nominee or Government Companies shall accordingly be waived off. All E&P companies will now be free to sell crude oil from their fields in domestic market.
• Government revenues like Royalty, cess, etc. will continue to be calculated on uniform basis across all Contracts. As earlier, exports will not be permissible.
• This decision will further spur economic activities, incentivize making investments in upstream oil and gas sector and builds on a series of targeted transformative reforms rolled out since 2014.