Incentives likely for companies to enhance output from ageing oil and gas fields

The government has floated a draft policy for boosting oil and gas output through projects using enhanced oil recovery techniques. It has proposed major fiscal incentives including a 50 per cent waiver of the oil cess and reduced profit sharing for companies. The draft Policy Framework to Promote and Incentivize Enhanced Recovery Methods floated by the DGH has also proposed an incentive equivalent to 10 per cent of the gas wellhead price on the gross production of gas from approved enhanced gas recovery projects for a period of 10 years.