Ministry of Petroleum and Natural Gas will soon publish formula for a premium on gas prices.
"Pricing of gas is a big challenge in India. When we declared the last pricing formula, there we have committed to give additional premium. Gas which is produced in difficult areas (ultra-deep water and deep water) will get the premium. We will be publishing the premium formula shortly," said Dharmendra Pradhan, minister for oil and natural gas in Mumbai.
Premium would be given on new discoveries.
The government is also working on a plan to auction discovered marginal fields and bring in new oil and gas field bidding round by the end of this fiscal.
"By the end of the fiscal year, we will be ready with a policy on marginal fields. It is before the cabinet," said Pradhan.
N K Verma, CEO & MD ONGC Videsh said Farzad B development plan under discussion with Iran and the company has submitted development plan for Iran Farzad B block.
Sources at Essar Oil said the company is seeking extension of delisting approvals. Regulatory nods for Essar Oil delisting expired early this month. Essar Oil added that India must set up 200 mtpa refinery capacity in 6-7 years and must add 20 mtpa refinery capacity every second year.
L K Gupta, Essar Oil MD said, "Loww crude oil prices here to stay."