India's new government must reform its gas price regime for the survival of the gas industry in the country, BP CEO Bob Dudley said Tuesday, adding the company's experience so far had been "disappointing."
BP and its partners in India issued an arbitration notice to the previous government last month after the government put on hold a gas price hike sought by the industry in January.
BP made a $7 billion investment in India's Reliance Industries in 2011 to help explore and develop deepwater fields offshore eastern India.
"It has been disappointing, the pace at which certain things have been approved -- the price rising up towards a market price, there have been a number of delays in seabed surveys and the appraisals of various projects," Dudley told journalists at the World Petroleum Congress in Moscow.
"You just have to look at the natural gas prices around the world. It seems not right that it would be more economic to produce gas in Australia and sell it into India at $20 per million cubic feet, than be able to develop the resources in India."
"I'm very hopeful that the price will move up, per the previous government's decision, which has been put on hold. It's very important, or the entire offshore industry in India is at risk. I'm hopeful that the new government will move the price up. It's actually essential to preserve that industry."
Source: Platts
BP and its partners in India issued an arbitration notice to the previous government last month after the government put on hold a gas price hike sought by the industry in January.
BP made a $7 billion investment in India's Reliance Industries in 2011 to help explore and develop deepwater fields offshore eastern India.
"It has been disappointing, the pace at which certain things have been approved -- the price rising up towards a market price, there have been a number of delays in seabed surveys and the appraisals of various projects," Dudley told journalists at the World Petroleum Congress in Moscow.
"You just have to look at the natural gas prices around the world. It seems not right that it would be more economic to produce gas in Australia and sell it into India at $20 per million cubic feet, than be able to develop the resources in India."
"I'm very hopeful that the price will move up, per the previous government's decision, which has been put on hold. It's very important, or the entire offshore industry in India is at risk. I'm hopeful that the new government will move the price up. It's actually essential to preserve that industry."
Source: Platts
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