+
 Vedanta Cairn Oil & Gas bats for import parity pricing on crude oil
POWER & RENEWABLE ENERGY

Vedanta Cairn Oil & Gas bats for import parity pricing on crude oil

Due to the Ukraine crisis, international crude oil prices are hovering around $100 per barrel, so Vedanta arm Cairn Oil and Gas batted for import parity pricing on crude oil to bolster domestic production. India's largest private exploration and production company is Cairn Oil and Gas.

It also pushed for a rethink of the Enhanced Oil Recovery (EoR) policy, calling for levies to be reduced from 70% to 40%.

Domestic crude sales to refineries are subject to central sales tax and Value- added tax (VAT), whereas imported crude is not. Domestic crude will be 3% more expensive as a result of this. This additional cost can not be passed on to customers because import parity is not in place. This cost is currently being borne by domestic producers, and it is being added to the cost of sales. The central sales tax (CST) Act was amended in February 2021 by the Union Budget, which removed the benefit of a 2% CST concession against the C-form. The production cost rises as a result.

When asked about the government sops that the company needs to increase production, he asked for a rethink of the EoR and improved oil recovery (IOR) policies. This is because pre-New Exploration Licensing Policy (NELP) blocks are expected to provide the majority of incremental production in the short term. Changes to the shale policy were also suggested by the company to make the industry more viable.

This year, the company plans to begin its shale pilot project, with a potential resource base of around 3 billion barrels. In the case of shale, the industry demanded a 10% increase in profit petroleum, in addition to the percentage of profit petroleum shared with the government under current production-sharing contracts. There were also calls for the Centre's profit petroleum share on unconventional blocks to be capped at 20%.

Image Source

Also read: Vedanta Aluminium business to focus on backward integration in 2023

Due to the Ukraine crisis, international crude oil prices are hovering around $100 per barrel, so Vedanta arm Cairn Oil and Gas batted for import parity pricing on crude oil to bolster domestic production. India's largest private exploration and production company is Cairn Oil and Gas. It also pushed for a rethink of the Enhanced Oil Recovery (EoR) policy, calling for levies to be reduced from 70% to 40%. Domestic crude sales to refineries are subject to central sales tax and Value- added tax (VAT), whereas imported crude is not. Domestic crude will be 3% more expensive as a result of this. This additional cost can not be passed on to customers because import parity is not in place. This cost is currently being borne by domestic producers, and it is being added to the cost of sales. The central sales tax (CST) Act was amended in February 2021 by the Union Budget, which removed the benefit of a 2% CST concession against the C-form. The production cost rises as a result. When asked about the government sops that the company needs to increase production, he asked for a rethink of the EoR and improved oil recovery (IOR) policies. This is because pre-New Exploration Licensing Policy (NELP) blocks are expected to provide the majority of incremental production in the short term. Changes to the shale policy were also suggested by the company to make the industry more viable. This year, the company plans to begin its shale pilot project, with a potential resource base of around 3 billion barrels. In the case of shale, the industry demanded a 10% increase in profit petroleum, in addition to the percentage of profit petroleum shared with the government under current production-sharing contracts. There were also calls for the Centre's profit petroleum share on unconventional blocks to be capped at 20%. Image Source Also read: Vedanta Aluminium business to focus on backward integration in 2023

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code