One
of the biggest hurdles that Oil companies operating in India today face is getting ‘clearances’
from numerous agencies . In fact the progress in exploration work in over
50 oil block awarded under NELP ( New Exploration Licensing Policy) has been slowed down due to clearance hurdles as on
January 2013. Speedy clearances of these blocks will not only benefit oil companies
like ONGC, RIL and Cairn but also benefit the country as billions of dollars of
various Oil and Gas projects are stuck up in Red tape. The government has set
up a Cabinet Committee on Investment (CCI) in January 2013 to expedite the
clearance of high valued projects. Only time will tell how far CCI does goes in
delivering what it has promised.
One of the latest victims of this might be OVL ( ONGC Videsh Limited)- Conoco Phillips deal of Kashagan feild of Kazakhstan. According to some sources the China National Petroleum Corporation ( CNPC) is trying to get the 8.4% stake from Conoco Phillips at Kashagan. The president of China is lobbying hard to get this deal in favour of the chinese. Indian government has not shown any such high level government initiatives and is yet to approve this deal on paper.
This might prove costly for the nation in the near future.
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