The Centre has reduced royalty rates on the production of crude oil and natural gas from several categories of fields, including deepwater and ultra-deepwater blocks, in a move aimed at boosting domestic exploration and production. The revised rates were notified by the Ministry of Petroleum and Natural Gas on May 8.
The changes are expected to reduce costs for companies exploring difficult and capital-intensive oil and gas fields, areas where India has been trying to attract more investment to boost local energy production and reduce import dependence.
