Union Cabinet agrees MFP for Progress of Hydrocarbon discoveries [ Current News (Concise) ]
About Marginal Fields Policy (MFP): It is the major policy initiative to develop the domestic, economic and production sector. This includes the auctioning of 69 oil & gas fields that hold reserves of 89 mn tonnes with the potential revenue of INR 70, 000 CR, as claimed by the government.
- The approval shows increasing drive by the government to encourage E&P in domestic oil and gas basins and reduce import dependency by 10 % by the year 2022.
- The policy allows the successful customer to sell these oil fields at the fundamental market price of gas, rather than at an administered price
- It should be noted that this is first time revenue sharing model introduced in oil sector.
About Union Cabinet agreeing MFP for Hydrocarbon discoveries:
- Union Cabinet (a Cabinet of Senior Ministers, led by Prime Minister approves in taking decision on Republic of India) has approved Marginal Fields Policy (MFP) to function small and marginal unexploited hydrocarbon discoveries by state owned oil companies.
- This decision was taken by Prime Minister Modi in Cabinet meeting in Delhi.
- Published on: September 11, 2015