A Group of Ministers (GoM) on corruption has asked the government to create an independent regulator for oil and gas fields. The GoM has proposed that the new regulator should take over critical functions of the Directorate General of Hydrocarbons (DGH),which reports to the Oil Ministry and is its technical arm for issues involving oil and gas exploration and production contracts.The DGH is currently under the scanner of investigative agencies over allegations of malpractices by the former head of the body. The proposal, cleared by the GoM would be forwarded to Prime Minister’s Office for action.
Meanwhile, the Oil Ministry is against the creation of a separate upstream regulator.The Ministry argued that policies such as the New Exploration Licensing Policy and Coal-Based Methane already provided a level playing field to all companies.
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