Bringing in foreign capital into Indian E&P: New business model coming up
Oct 03:
The regulatory maze around India's E&P sector continues to deter foreign investors. 8There has been no fresh foreign E&P investment in India for a long time now and current rounds saw no participation at all. 8The NELP rounds did see see a lot of big international companies come in but, deterred by the Indian government's onerous permitting system and a one-sided dispute resolution mechanism, all them returned disappointed. 8A new investment paradigm seems to be emerging of late, wherein an Indian partner owns the block, natures the E&P property by ensuring that all clearances are in place, does all the required due diligence, and then creates a value proposition for a foreign investors to come in with money or technology or both. 8Early stage farming in, after a set of milestones are cleared, rather than at the bidding stage or later at the production stage, is now seen as a better way of getting a foreign partner interested in the Indian E&P sector. 8Find out how one company is planning to put together a carefully configured bouquet of exploration properties to attract foreign investments. Click on Details for more