While the intention of the ER policy was to boost domestic oil and gas production from ageing fields, it has not yielded the desired results.
Cairn Oil and Gas wants the government to incentivise enhanced recovery techniques in the oil and gas industry by bringing down levies to 40 per cent from the current 70 per cent.
A unit of Anil Agarwal-controlled Vedanta group, it is hoping to recover around $4 billion of its investment once the government approves tweaks to the enhanced recovery (ER) policy that was floated in 2018.
“The current contribution is around 70 per cent of revenue (from oil and gas production that comes after ER is deployed) as levies make many projects unviable. The idea is how we can bring it down to the level of 40 per cent. We have a lot of projects lined up that can get
First Published: Oct 23 2021 | 06:10 AM IST