PM Modi to brainstorm with global CEOs on oil scenario
What's the story
Prime Minister Narendra Modi will tomorrow brainstorm with Chief Executives of top global and Indian oil and gas companies on emerging energy scenario, with ripples from the US sanctions on Iran and volatile oil prices threatening growth. The third annual meeting would also deliberate on ways to revive investment in oil and gas exploration and production, official sources said.
Meetings
Timeline of Modi's previous meeting with oil heads
Modi's first meeting was on January 5, 2016, where suggestions for reforming natural gas prices were made. Over a year later, the government allowed higher natural gas price for yet-to-be-produced fields. In the last edition in Oct'17, suggestions were made for giving out equity to foreign and private companies in producing oil and gas fields of state-owned ONGC and OIL. But ONGC opposed it.
Details
Meeting expected to focus on volatile oil prices
Sources said Saudi Oil Minister Khalid A Al-Falih, BP CEO Bob Dudley, Total head Patrick Fouyane, Reliance Industries Chairman Mukesh Ambani, and Vedanta chief Anil Agarwal are expected to attend the meeting tomorrow. The meeting, coordinated by the NITI Aayog, is likely to focus on challenges posed by volatile oil prices and the US sanctions on Iran.
Reforms
Meeting to look at measures to attract investments
The meeting would look at measures to attract investments and steps for making it easier to do business in India. Sources said reforms initiated in the last four years in the oil and gas sector, including open acreage policy, pricing reforms, and liberalized licensing policy, will be showcased and suggestions would be sought on what more can be done to hasten growth.
Information
Fuel demand has been rising 5-6% annually
The government is looking at private investment to raise domestic oil and gas production, which has stagnated for the last few years while fuel demand has been rising by 5-6% annually. India is dependent on imports to meet 83% of its demand.
Oil dependence
OPEC Secretary General, Mohammed Barkindo, to attend the meeting
Modi, in 2015, set a target of reducing India's oil dependence by 10% to 67% (based on import dependence of 77% in 2014-15) by 2022. Import dependence has only increased since then and the government is now looking to raise domestic output. Organization of the Petroleum Exporting Countries, Secretary General, Mohammed Barkindo, and India's Oil Minister Dharmendra Pradhan would also attend the meeting.
Information
Here are details of those likely to attend the meeting
Others likely to attend the meeting are ONGC Chairman Shashi Shanker, Indian Oil Corporation Chairman Sanjiv Singh, GAIL India head BC Tripathi, Hindustan Petroleum Corp Ltd Chairman Mukesh Kumar Suran, Oil India Chairman Utpal Bora, and Bharat Petroleum Corp Ltd Chairman D Rajkumar.