The Ministry of Petroleum and Natural Gas (MoPNG) on July 11, 2022 has issued Notification regarding Deregulating sale of domestically produced Crude Oil.
The following has been stated namely: -
• Government of India shall cease allocation of crude oil and condensate with effect from October 01, 2022.
• The condition in Production Sharing Contracts (PSCs) to sell crude oil to Government or Government Nominee or Government Companies, shall be waived off, if such a condition is mentioned in any PSC and the Contract shall stand amended accordingly.
• Unless the contract provides otherwise, royalty, cess, other statutory levies and contractual payments such as profit petroleum, revenue share, etc. shall be valued based on the actual sales price or the price of the Indian Basket of crude oil, as calculated by Government nominated Agency on monthly basis, whichever is higher.
• Exports of domestic crude oil will continue to be not permitted.
[Notification No. Expl-15019 (25)/161/2019-ONG-D-V (E-34367)]
