New Delhi: Prime Minister Narendra Modi on Monday made a strong pitch for a partnership between oil producers and consumers to help stabilise the global economy.
He also appealed to the oil producing countries to channel their investible surplus to pursue commercial exploitation in the oil sector in developing countries, a statement from his office said. Modi made these suggestions while meeting CEOs and experts from the oil and gas sector from India and abroad here.
During the interaction, the prime minister highlighted the significant positioning of India in the oil and gas market and said the oil market was producer driven and quantity and prices were determined by oil producing countries.
"Though there is enough production, the unique features of marketing in the oil sector have pushed up the oil prices. The prime minister made a strong case for a partnership between the producers and consumers in the oil market, as it exists in other markets. This will help stabilise the global economy which is on path of recovery," the statement said.
Modi drew attention of the experts on certain key policy issues relevant to India. He highlighted that the consuming countries, due to rising crude oil prices, face many other economic challenges including serious resource crunch.
"The cooperation of the oil producing countries would be very critical to bridge this gap. He appealed to oil producing countries to channel their investible surplus to pursue commercial exploitation in oil sector in the developing countries," the statement read.
The PM also spoke of higher acreage under exploration and sought cooperation of the developed countries, both in terms of technology and extension, of the coverage.
He also sought the role of private participation in the distribution of gas sector. On technology, he appealed for assistance in areas where high pressure and high temperature technology applications are relevant to commercial exploitation of natural gas. He also requested for review of payment terms so as to provide temporary relief to the local currency, the statement said.
The gathering included ministers from Saudi Arabia and UAE and CEOs and experts from organisations, including Saudi ARAMCO, ADNOC, BP, Rosneft, IHS Markit, Pioneer Natural Resources Company, Emerson Electric Company, Tellurian, Mubadala Investment Company, Schlumberger Ltd, Wood Mackenzie, World Bank, International Energy Agency (IEA), NIPFP, Brookings India and various Indian companies involved in both upstream and downstream operations.
Finance Minister Arun Jaitley, Petroleum Dharmendra Pradhan, Vice-Chairman NITI Aayog Rajiv Kumar and senior officials from the government and Niti Aayog were also present. During the interaction, the participants appreciated the steps taken by the government for ease of doing business, specifically in the energy sector.
The experts made a special mention of India's competitive ranking from the upstream investment point of view which has gone up from 56 to 44. Subjects such as expansion of oil and gas infrastructure in India; enhancing exploration and production; potential in solar energy and biofuels; and the government's holistic approach to the energy sector came up for discussion.
The experts appreciated the unique initiative of this kind of a dialogue which brings various stakeholders together on policy matters. Modi also spoke about the various policy initiatives and developmental measures undertaken by government in the sector.
He highlighted the liberalisation in gas pricing and marketing and about the ongoing commercial exploitation, and made a special mention of extension of production sharing contracts.