Indian oil firms need to bring in foreign players to unlock resources: Pradhan

India’s Oil Minister Dharmendra Pradhan speaks at a road show organised by the Directorate General of Hydrocarbon (DGH) in Mumbai, India, October 26, 2017. REUTERS/Shailesh Andrade/File Photo

NEW DELHI (Reuters) – India’s oil minister Dharmendra Pradhan asked exploration companies to consider farming out their acreages to global players with advanced technology to expedite development and raise oil and gas output.

India, the world’s third biggest oil importer and consumer, depends on foreign purchases for over 80% of its oil needs. The nation’s oil and gas output has been stagnant for years, forcing it to raise reliance on imports to meet rising fuel demand.

“The government will grant petroleum mining lease rights but the companies should consider a farm-out (of a stake) to get global technology players,” Pradhan said in Hindi.

Indian exploration companies should work at “exponential speed” to unlock resources, Pradhan said at production sharing signing ceremony of 11

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