(BS)
The government is set to come out with a new policy aimed at increasing oil production from nomination blocks of Oil and Natural Gas Corporation (ONGC) and Oil India (OIL), sources in the know said.
The proposed policy would encourage private sector investment and help bring in world-class exploration and production technologies. “The production enhancement policy will go for inter-ministerial consultation soon and is likely to come up for Cabinet clearance within a month. We expect the enhanced oil recovery (EOR) policy to be presented before the Cabinet in two months,” said a source, adding that the petroleum ministry would take opinions from the finance ministry, the law ministry, and the NITI Aayog in this regard.
EOR techniques are used to extract more crude from depleting fields by using gas, heat or chemical injections to push up oil from difficult traps. The capital-intensive process will now get push from the private sector, too, as part of the larger road map by Petroleum Minister Dharmendra Pradhan to increase hydrocarbon production in India.
