Global Oil and Gas Marketing companies have shown concern to the Indian government about possible gas price regulations. Global oil exploration firms do not want to see their dollars flow down the drain! They have asked the Indian government to stay away from gas pricing. Chevron, Niko, British Gas and Hardy Oil have expressed concerns on the government’s move to regulate gas pricing.
The oil firms have written that exploration is a very risky business and highly capital intensive. Therefore, they say, a market determined price for gas would ensure that fiscal terms are internationally competitive. By this, they say will encourage companies to invest in India.
British Gas Company, which has invested a billion dollars in India so far, has told the Indian government that it is planning on investing another billion in the next four years. But it says, if changes are made to the production sharing contract which is in practice in KG Basin Gas Pricing, and critical provisions such as market pricing for gas amended, the confidence of international companies would be eroded.
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